Business Recovery Services
A tough economic climate, rapid market changes, new competitors, disruptive technologies, and strategic errors - any or all of these can plunge a company into serious financial distress. Left unaddressed, they may threaten corporate survival. Whether these factors occur in isolation or converge, they typically trigger a host of problems, including underperformance, declining earnings, and liquidity and cash flow blockages. Companies often exhibit symptoms of distress well before a crisis erupts. In many cases, a downward spiral is not inevitable. It can be arrested and reversed. Early detection and swift, decisive action are the keys to restoring performance and value. That's why timely, expert advice is critical.
If this is your situation
- You are affected by unforeseen changes in the market or shifting consumer preferences
- You are facing an actual or potential breach of covenant
- You are burdened by excessive debt or poor liquidity
- You are facing a credit rating downgrade
- Your debt is trading at "distressed" levels
- Your corporate structure is no longer aligned with your business objectives
- You have units or subsidiaries operating inconsistently with Group strategy, or you are looking to sell-off some non-core operations
- As a business or financial stakeholder, you have concerns about the business and wish to appoint independent accountants to review the situation and analyze the available options
- As a stakeholder in a distressed business, you need to manage your exposure, both legal and financial
- As an individual in financial difficulty, you find yourself facing bankruptcy and want some professional advice and help.
How PwC can help you
Our Business Recovery Services team is a dedicated team of specialists with extensive skills in improving the performance of under-performing businesses or business divisions. We provide support to lenders, creditors, companies and individuals in troubled financial situations, helping them find sustainable solutions that deliver for all involved. Our key skills are in the identification of the factors causing business under-performance and helping you to return your business to maximum performance with minimal disruption. Our experienced teams offer a full range of advisory and implementation services, from business reviews and restructuring plans to distressed disposal strategies. The firm's business recovery specialists are valued by clients for their ability to quickly identify problems, gain cooperation, develop viable solutions, and implement them with sensitivity and precision.
The services we provide includes
- Independent Business Review
- NPL Sales & Analysis
- Distressed M&A
- Restructuring
Independent Business Review
When a company is underperforming, in distress, or in crisis, our first step is to undertake a tailored, objective assessment of the situation and resources. Our rapid and rigorous review process scrutinizes financial performance, operating dynamics, asset deployment, and management issues - and then identifies a range of options. The reviews are either for financial stakeholders or for the business itself; they clarify the situation for both parties and allow clearer evaluation of the available options.
If this is your situation
- You are affected by unforeseen changes in the market or shifting consumer preferences.
- As a business or financial stakeholder, you have concerns about the business and wish to appoint independent reporting accountants to review the situation and provide available option.
- As a business you need to better understand the reasons for your underperformance and the available options.
PwC can help you
- By providing real clarity as to the current financial and/or operational status of a business and the range of options available in the short and longer term.
- A rehabilitation of trust between the business and its financial stakeholders.
NPL Sales & Analysis
Acting as an advisor, PwC helped arrange Taiwan's first non-performing loan (NPL) auctions in 2002. Since then, we have continued to advise local and international banks, asset management companies, and other financial institutions on NPL disposals or purchases, and we remain the undisputed leader in the NPL auction market. We are able to provide customized advisory services for both NPL sell-side and buy-side.
If this is your situation
Your bank or financial institution suffers from a high NPL ratio
Your institution faces a large NPL write-off and lack the resources to manage a recovery
Seek potential NPL portfolios or evaluating to buy any NPL portfolios
PwC can help you
Sell-side Services: We act as the lead financial advisor in relation to whole process of NPL sales, including:
Advise on disposal strategy
Preparation of confidential information memoranda
Vendor due diligence
Valuation advice
Investor list and road show
Designing and executing appropriate bidding/sales procedures
Negotiation and assistance in signing contract
Assistance in deal closing
Buy-side Services: We offer comprehensive advisory services tailored to meet investor’s needs:
Due Diligence and negotiation support: portfolio review and valuation;
Advising on appropriate deal structures for proposed negotiated transactions;
Advising on accounting/tax implications of proposed structures;
Advising on the nuances of the Government approval process (if applicable);
Assisting in the deal completion process, including assistance in securing requisite government approvals;
Identifying potential portfolio investment opportunities.
Distressed M&A
For business stakeholders experiencing pressure on profitability, cash flow and/or the balance sheet, we maximize value through the sale of shares, business units and assets using a combination of corporate finance, restructuring, insolvency and tax skills/techniques. PwC has an accelerated disposal methodology that delivers substantial value over and above what is usually recovered in an unplanned insolvency situation. Our team of professionals brings highly specialized skills to assist in quickly generating liquidity through sourcing additional or replacement financing and, where appropriate, maximizing proceeds from the disposal of non-core assets or business units.
If this is your situation
Experiencing liquidity problems in your business
Viable capacity exists but its utilization is low or production costs are too high
Financial difficulty has arisen due to sudden, adverse changes in market conditions
Want to refinance and find the best source of capital to support business objectives
PwC can help you
With a process that meets the constraints your business faces, whether they are cash, time, customer/supplier pressure etc, we use a breadth of skills and experience that cover corporate finance, restructuring, insolvency and tax to develop a divestiture strategy
We assist in the identification and solicitation of potential buyers, and we help maximize value by exploring options with potential buyers to deliver a sale of shares, business unit or assets. We can also help with refinancing and fund raising, reorganization and restructuring
We work with stakeholders to provide a business sale that is properly orchestrated, delivered quickly, and managed according to the different demands of the various stakeholders (shareholders, creditors, management, customers, suppliers, employees, etc.)
Restructuring
For underperforming companies, we deliver restructuring solutions designed to build a platform for swift recovery and sustained future success. We thoroughly assess all revitalization options, develop a plan of action in partnership with management, creditors and other stakeholders, and mobilize the resources required for effective implementation. Our specialist teams utilize PwC's unrivalled industry expertise and extensive local knowledge to plan complex, even cross-border, restructurings; and they also help underperforming businesses in planning and implementing recovery strategies quickly and efficiently. Whether through formal or informal proceedings, our goal is to rebuild trust between the business and its financial stakeholders, and develop a detailed, targeted action plan for business improvement, simplification or divestment.
If this is your situation
- Experiencing cash pressure or liquidity shortfall
- Facing a credit rating downgrade
- Debt trading at "distressed" levels
- Assets are over-leveraged
PwC can help you
- Recover from crisis: This may involve moving forward on several fronts - crisis intervention, stabilization and stakeholder communication; generating quick wins and reducing working capital; designing and implementing a value-adding plan.
- Identify viable solutions for preserving the business, such as establishing cash needs and controls, balance sheet reconstructions, and inter-creditor negotiations
- Understand better the business’s position, financially and commercially, its prospective sustainability and the range of restructuring options available
- Drawing on PwC's extensive industry experience, we provide an unrivalled combination of restructuring and industry expertise.
- For lenders/creditors, maximize/realize value: Develop solutions in partnership with creditors and debtors using our unrivalled experience in working through crises where objectives may diverge and there are severe pressures on relationships between the company and its stakeholders
