United Kingdom

Early Options 

In a situation where a business faces uncertainty, it needs options.

 

In many cases, turnaround plans carry high risk and holding deliverable contingency options can provide a company’s board and stakeholders with an alternative if the plan fails.

 

KPMG’s Early Options is a dedicated national team that combines mergers and acquisitions (M&A) and turnaround expertise. It creates an environment where all available options can be explored simultaneously whilst the board continues to implement its chosen plan.

What's on your mind?


Identifying suitable options quickly is difficult for stakeholders. Our team will work with the board to help them promptly answer the following questions:

 

if ‘Plan A’ cannot be delivered can we:

 

  • refinance the business?
  • find a specialist equity investor at short notice?
  • launch an MBO?
  • sell the business?

 

and will any of these options suit our stakeholders?


Bringing you peace of mind


The main feature of Early Options is a nationally recognised accelerated options process, which helps secure practical offers or other solutions in a short time.


The process enables flexibility exploring all the refinancing /sale options. 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 explore refinancing, management buyout opportunities and any other available options.


KPMG's Cash Management can be used throughout the process to establish whether there is enough time to run a full process, be it three weeks or months.
 
What's in it for you?

 

  • Preserve value in the business for the key stakeholders
  • Allow enough time to consider all available options for the business
  • Stakeholder management

 

Why KPMG?

 

  • 60 Early Options processes completed in the last 12 months
  • Experience with all organisations of various shapes and sizes
  • A unique set of relationships with investors who specialise in these types of situations
  • A dedicated national team blending M&A and turnaround skills

 

Case Studies
 
1. Refinancing secured for produce business


Summary

 

  • The company asked us early on to run an options process, which included refinancing and sale options.
  • We helped with stakeholder and cash management.

 

Outcome

  • Delivered two sale options held ’completed‘ by a third party to protect downside risk, whilst the final restructuring option was considered and finalised.
  • The company was successfully restructured and new equity introduced without needing an insolvency process.
     

2. Investors realise value via share sale of bank debt


Summary

 

  • The company appointed us to look at sale and refinancing options.
  • We also provided stakeholder and cash management support, including bringing major customers into the process across ten weeks.

 

Outcome

 

  • A solvent sale to a financial investor was secured, avoiding insolvency and the business was preserved.