- Service: Advisory
- Type: Business and industry issue
- Date: 29/09/2010
Recognising that management teams may need the necessary experience to restructure and turnaround the performance of a business, our Chief Restructuring Officers (CROs) provide hands on senior executive capability and have established track records across various businesses and sectors.
Depending on the specific business situation, they can take Executive and formal Board appointments, or act in an advisory executive capacity alongside existing directors and management.
What's on your mind?
Recognising that each situation will have its own specific issues, these may include:
- A loss of stakeholder confidence (banks, other lenders, investors, suppliers) and strained or poor communication.
- Underperformance and poor management of stakeholders' expectations - repeated failure to execute plans, overly optimistic forecasts.
- Critical management gaps, situational skill deficiencies, questions and concerns over senior management capability to deal with the situation or execute plans.
- Financial performance and cash/working capital challenges leading to going concern, liquidity and/or covenant issues.
- Management continuing to manage for profit or share value when cash and debt recovery has actually become the more pressing issue.
- Unforeseen issues - black holes, governance and control issues or breakdowns, lenders have requested an IBR (independent business review), a step change in the businesses key markets.
Bringing you peace of mind
- Our CROs can take hands on executive roles focused on managing and implementing the restructuring and turnaround.
- We seek consensus amongst stakeholders.
- We are able to create stability within the business.
- We execute both the operational and financial restructuring i.e. improving the business and re-engineering it's balance sheet.
- Depending on the situational requirements we can utilise other KPMG experience to offer a wide range of solutions and outcomes e.g. People Services, Debt Advisory Services, Crisis and Strategic Cash Management, Exit planning and Implementation
What's in it for you?
As a client the key benefits can include:
- Immediate support for your business, Board and executive management.
- Improved control of the necessary restructuring and/or turnaround process.
- Clear, open and trusted communication with stakeholders.
- An opportunity to refresh and renew the focus on business performance with the potential to improve results and value.
- Enhanced speed and quality of decision making.
- Alignment of company and creditor objectives.
- Executive input into analysis and decision making taking direct executive responsibility - this direct intervention contrasts with the traditional advisory model which must act through an incumbent management team.
- Execution of a wide range of other solutions, including refinancing, sale or exit of business(es).
- We have extensive turnaround situation experience, which is valued and respected in the restructuring market, with multi-award winning credentials.
- We have direct access to and the support of the multi-disciplinary experience within KPMG including Private Equity, Tax and M&A, meaning we can provide wide-ranging, scaleable advice.
- We are willing to align our fees with achieving successful client outcomes.
- We can offer the support required according to your situational needs whether that means taking a Board appointments or an advisory role.
- Project Linder - Oil Support Services - £958 million capital budget - took key board roles, managed change of control, negotiation and transition of major commercial contracts.
- Project Carlton - Telecom Infrastructure- £115 million debt - full restructuring and exit review, separation of loss making businesses, overhead reduction, return core business to profitability.
- Project Templeton - Rail Leasing - £400 million debt - UK and European business separation and set up to accelerated timetable, operational governance and business process review and improvement plan.
- Project Brentford - Consumer Services - £200 million turnover, £120 million debt - operational improvements; full debt repayment; eventual sale of business.
- Project Savanna - Audit client - Distribution - £500 million turnover, £115 million debt - stabilisation ahead of appointment of new management team.