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  • Corporate Finance

    Business Restructuring

Business Restructuring

Many businesses experience periods of poor performance, in whole or in part. On these occasions, one partner with management knowledge is required to assist in the implementation of an enabling solution that will serve the shareholders and funders interests. Our services include:

  • Preparation of restructuring plans, including PER context and insolvency
  • Direct negotiation with creditors
  • Raising Finance
  • IBR - Independent Business Review.

In the last decade the financing structures have become more complex and the businesses larger and more global. The team of BDO recognizes the challenges that these changes have created in companies, their creditors and shareholders. We support the identification of solutions and the implementation of action plans that improve the companies performance.

Our services are provided taking into account the different situations of the company:

Lack of liquidity and failure of Working Capital

In the first phase the company is in financial distress and is no longer able to meet its commitments. Usually this phase is caused by adverse economic conditions that affect in particular: the business growth rate, trade margins and operating profitability. Our services can go through:

  • Operational Performance Optimization
    We identify operational risks of the company and we present efficient solutions for optimizing operating profitability.
  • Working Capital Management
    We work with the company to identify potential benefits available and different options and to implement sustainable changes.
  • Corporate Restructuring
    Our services include advisory on the appropriate debt structure of the company or on the restructuring of the current debt.

Partial Insolvency

At this stage, late payments generalize to all creditors. We help our clients, who may be the company, funders or even the majority of creditors, in situations which may involve:

  • Advising on the development of strategic options
  • Support the implementation of strategic options, including moving our experts for the company to ensure its financial management
  • Monitoring the implementation of actions agreed between the company and the creditors

Total Technical Insolvency or Bankruptcy

The company is impeded to fulfill their due obligations, not having economic and financial conditions to continue the operations.

  • The company's recovery is our goal. However we know that this is not always possible. We advise that both the company and its creditors should have previously defined a strategy in the event of insolvency. We can help you set this strategic plan to maximize the recovery value.

IBR - Independent Business Review

Financial institutions have gradually been asking the intervention of an independent entitie to analyse the Business Plan presented by companies to support the credit granting or credit restructuring decisions.

In our IBR service, we review the financial forecasts to conclude whether the underlying assumptions are realistic and the calculations accurate, compared with the historical performance of the company and the expected trends, we do sensitivity analyzes and we identify financing  alternatives or debt restructuring solutions. Our work, by providing security to the funding institutions and reducing the level of information discrepancy, brings solutions that benefit both parties.