Our Expertise

Restructuring & Turnaround Advice

If a company is faced with financial strain from market forces, technological advancement or an unforeseen crisis, it may need to undergo a phase of restructuring and turnaround to ensure its future viability.

Restructuring is typically focused on a company’s balance sheet particularly the company’s debt position and equity capital. When restructuring, a company may seek to, among other things:

  1. refinance or minimise its debts;
  2. increase its credit facilities to allow greater access to working capital;
  3. have its existing debts sold or transferred to more favourable parties;
  4. convert its existing debt into equity; and
  5. repurchase, consolidate or subdivide its issued shares.

Restructuring can focus on either the assets or liabilities of the company, or both. A change to one side will have a corresponding effect on the other.

Turnaround is typically focused on a company’s operation and management and its impact on profitability.

When a company is undergoing turnaround, the company will be seeking to:

  1. cut costs and reduce expenses, this may involve considering current employment arrangements and contractual obligations (i.e. suppliers);
  2. increase revenue, this may involve price rises or diversification of products or services; and
  3. reduce unnecessary overheads and liabilities.

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