What's on your Mind?
- An underperforming division is holding back a group's value/results and taking a disproportionate amount of management time.
- Recently completed strategy review.
- A loss-making non-core activity.
- Migration to a lower cost country.
- A multi-national closure programme requiring experienced knowledge and resource.
Bringing you peace of mind
- Hands-on support for exits from subsidiaries, divisions, countries, contracts and other business activities.
- Support through assessment of options, planning for a chosen scenario and implementation of the exit.
- Programme management support against defined and agreed readiness criteria.
- Robust challenge of existing assessments and plans.
- Resource with deep and broad experience.
- Tried and tested methodologies and tools.
- We structure our thinking under key areas of complexity: People, Property and assets, Stakeholders, Operations, Liability management and Legal and tax.
- We can also help manage downside risk on establishing new businesses.
What's in it for you?
- Management time freed up to focus on the core business.
- We can consider self-funding success fee arrangements (in selected jurisdictions).
- Our robust and objective assessment allows the decision making to be free of natural local bias.
- We can review and challenge existing assessment to provide clarity on areas for development.
- We can help clients apply effective governance and programme management frameworks.
- In some circumstances we can take on a 'hands on' executive role in the closure implementation.
Why KPMG?
- KPMG firms have supported closures of many businesses across Europe over two decades including our work with insolvent companies.
- We aim to provide the client with:
- Additional visibility.
- Enhanced challenge.
- Greater financial robustness.
- Experience based knowledge.
- International reach.
Case Study - Project Starfish
- We worked with a large international group to help divest a non-core and loss-making retail business. We helped the client get ready to close in case a final attempt to sell were to fail.
- Key areas where we added value:
- Assessment report on timing, costs and risks of closure.
- Robust forecasting of performance, balance sheets and cash flows.
- Proposals for 'quick win' savings initiatives.
- Consideration of selling with a 'dowry'.
- Successful programme to reduce exposure to inventory forward orders.
- Detailed steps-plan to close the business.
- The joint KPMG team was able to help the client sell the business for positive value alongside robust fall-back planning. If the sale had not completed the business was ready to close without further costly delay and value destruction.
