What's on your mind?
The difficulty for many stakeholders is in identifying appropriate options in the time available. Issues faced may include;
- Can the business be refinanced?
- Could we find a trade buyer for the shares?
- Is a business and assets deal the only option?
- Is a Management Buyout feasible?
- Could we sell the debt to a third party?
Bringing you peace of mind
- The main feature of Early Options is an accelerated options process, which helps secure good offers or other restructuring solutions in a limited timescale.
- The process allows for flexibility by offering the shares and/or the business and assets for sale. In doing so, goodwill value can be maintained and a 'fire sale' avoided.
- As well as running an accelerated disposal, the Early Options process uses the same disciplines to source refinance and Management Buy Out exits as well as exploring other options that may be available.
- KPMG's Cash Management can be used throughout the process to establish whether there is adequate time for a full process to be run, whether three weeks or three months.
What's in it for you?
- Preserve value in the business for the key stakeholders.
- Allow sufficient time to consider all available options for the business.
- Stakeholder management.
Why KPMG?
- 35 Early Options completed in the last 12 months.
- Experience with all organisations of various shapes and sizes.
- We have strong relationships with refinancers and buyers of distressed businesses.
Case Studies
1. Refinancing secured for produce business
Summary
- Engaged by the company at an early stage of stress to run an options process, which included refinancing and sale options.
- Assisted with stakeholder and cash management.
Outcome
- Delivered two sale options held "completed” in escrow to protect lenders downside risk, whilst the final restructuring option was considered and then finalised.
- The company was successfully restructured and new equity introduced without the need for an insolvency process.
2. Investors realise value via share sale of bank debt
Summary
- KPMG were appointed to assist in the disposal of an automotive group's pan-European subsidiaries and the winding down of other holdings.
- Cash management implemented to enable time for the option process to be run.
- Assisted in stakeholder and cash management
Outcome
- Two divisions were sold to trade buyers
- Bank debt of remaining automotive business was sold to a new financier enabling the group to be restructured.
