Operational restructuring and Chief Restructuring Officer
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When organizations perform at levels much lower than expected or have to adapt their structure to the new crisis environment, it is likely that the solution will involve an operational restructuring. The restructuring of companies in delicate situations requires certain multi-disciplinary skills (industry, commercial, operational, financial and legal) that most organisations do not have.
Our business restructuring team has the technical and industry knowledge and experience that is necessary to successfully face these types of situations, what allows for the most adequate solution based on our clients' circumstances and particularities and those in their sectors. At PwC we have extensive experience in facing situations in which it is necessary to launch a restructuring plan that reestablishes and guarantees the Company's viability as quickly as possible. Our approach is to work in close cooperation with management, using multidisciplinary teams with proven experience and with advisory and management services to develop realistic and pragmatic plans and support their execution. We have the capacity to define flexible fee models consistent with the results obtained.
Potential problems
As a Company Director, shareholder or any other interested agent, it is likely you will face the following problems:
- Market decline of more than 20% with an inflexible cost structure.
- Pressure on working capital.
- Unexpected decline in profitability.
- Unsustainable operating expenses.
- Failure to comply with covenants.
- Growing level of demands in terms of information requirements, often from financial institutions, regarding the Company's recovery plans.
- Need to develop, finance and implement a restructuring or change (turnaround) plan to maintain the support of interested agents and the Company's viability.
- Manage a plan for change or improvement while handling the day-to-day business.
- Need to develop a divestment and deleveraging plan.
How can we help?
- Carry out a review of short-term cash flows.
- Identify improvements in working capital and cost structures.
- Contribute our knowledge and experience in the Company's area of business to support the executive team to develop initiatives
- Access to interim managers with relevant experience in similar situations.
- Development of restructuring and sustainable operational improvement plans
- Assist with negotiations with external interested agents.
- Develop a project management office to coordinate the entire process and with work of the professionals involved, and facilitate the implementation of the restructuring or change (turnaround) plans.
