Fast impact. Sustainable results.
We help you respond to the challenges of COVID-19, providing trusted leadership in these urgent, critical and complex situations to help you recover and preserve value for a better future.
How to determine a solid path forward in a liquidation
British Steel needed a buyer to avoid closure and to continue the iconic brand, but a sale was never guaranteed.
What EY can do for you
We deliver solutions at pace, supporting clients as they recover, perform and improve. Whether you are a public or private company, government institution, investor or financial stakeholder, we work closely with clients with a focus on execution to transform financial and/or operational performance. We have extensive crisis management experience to help clients recover, preserve and create value.
We offer deep insight and practical on-the-ground support to help you answer:
- How can I establish an effective crisis management team to get more control of the situation?
- How can I build and secure liquidity, managing the impact of disruption between finance and operations?
- How can I get more visibility on potential business risks arising from COVID-19 and give clear recommendations for action?
- How can I protect business continuity?
- Who can help me develop options for a rescue or recovery plan; then help me find capital to support it and negotiate with my stakeholders?
We offer the support you need to achieve your objectives:
Most restructurings need a “Plan B” — whether as a contingency plan to provide comfort for directors and stakeholders or, alternatively, for financial stakeholders to create a credible point of leverage to break the deadlock and help all parties reach a consensual deal. In particularly challenging situations, when directors and businesses are facing increasing risks and challenges to continued trading, we create the time, space and environment to develop and deliver the right solutions.
We work with management and financial stakeholders to use the pace, protection, powers and flexibility available under insolvency laws to address the issues threatening a business’ survival. We use contingency planning and insolvency solutions to create restructuring legacies by increasing the chance of a consensual restructuring through a credible “Plan B,” delivering a rescue that could not otherwise be achieved, preserving and recovering value, stabilizing critical services, and protecting jobs or by providing a controlled exit.
Group structures can become increasingly complex through M&As, JVs and organic growth. This can lead to increased costs, as well as difficulties managing risk, simplifying operations, improving transparency and complying with changing regulations.
We have experience supporting the complete spectrum of organizations, whether large multinational companies seeking to reduce their global entity footprint, or a small domestic organization looking to remove a single entity from its structure for a specific purpose. Our team integrates restructuring, tax and financial consulting knowledge to help organizations assess, rationalize and simplify their legal entity structures across the following key phases of corporate simplification: setup, group complexity analysis, program management, due diligence, and issue resolution and entity eliminations.
Non-performing loans (NPLs) remain a challenge for banks, particularly in these times of economic uncertainty.
Our loan portfolio solutions team brings together experienced operators and deal advisors to advise financial institutions about their non-performing loan portfolios and also the buyers of those portfolios, delivering value through our breadth of knowledge and expertise.
The adage that “cash is king” is more relevant today than ever. Dynamic and disrupted markets, geopolitical uncertainty, and ever-growing corporate transparency are putting increasing pressure on companies’ liquidity and cash flows. Many management teams struggle to sustain good control over short-term cash flows and the working capital that drives them, leaving the business vulnerable to market and operational changes.
We have experience supporting the complete spectrum of companies, whether a successful business seeking to enhance shareholder value or an organization experiencing a cash crisis. We help you develop the three main ingredients of strong working capital management: identification of cash-generating opportunities, cash flow forecasting, and visibility and control through our advanced digital analytical techniques.
EY can help with interim management acting as a Chief Restructuring Officer (CRO) and offering Chief Restructuring Advisor (CRA) services. Restructuring or turning around an organization brings many challenges on top of the daily demands of running a business, for example: managing competing agendas, creating time to develop options, knowing which option is the right one when information may be imperfect and executing decisions at pace to maintain stakeholder support in a stressed environment.
We create understanding, alignment and support with internal and external stakeholders. We focus on actions that deliver transformational outcomes and provide interim management solutions, including offering a CRO or CRA, to help you deliver results.
Stakeholders are asked to respond quickly when businesses underperform, or suffer liquidity shortfalls or value erosion. We help provide support in a rapidly changing environment when information is incomplete, agendas no longer align and confidence is reduced.
We work with all stakeholders to preserve, create and realize value through restructuring advice, critical appraisal of a company’s ongoing viability, stakeholder intermediation, options analysis and entity priority analysis.
Preserving value for a company and its stakeholders often requires a reshaping of the capital structure and assets in the portfolio. This is often achieved by a combination of financial restructuring and liability management, together with M&A activities to dispose of non-core assets and potentially source new equity. EY professionals are experienced in helping you analyze, structure, negotiate with stakeholders and execute the best possible solution.
In the USA, Ernst & Young Capital Advisors, LLC (EYCA) is a registered broker-dealer and member of Financial Industry Regulatory Authority (FINRA: finra.org) and offers investment banking services with access to EY debt restructuring, M&A, debt capital markets and equity capital markets professionals across the globe.
Most businesses are likely to experience operational challenges and underperformance at some point. While the root causes can be buried, the negative impact can be highly visible — profit warnings, declining performance metrics, failure to achieve project milestones, loss of customer contracts or management departures.
Whether a business is in crisis or is simply facing an operational challenge, our team is experienced in helping management teams identify and prioritize the most critical issues, stabilize the business, establish a leadership and stakeholder consensus around the solution, in order to rapidly improve performance and create value.
Our hands-on value creation leaders help PE companies (and sponsors) deliver their investment case by accelerating cash and profit improvements, from ideation to results. We prioritize our involvement to focus on situations we know best: complex carve-outs, functional transformations, and instances of stress or distress.
Restructuring and turnaround tax services
At whatever stage an organization is on the performance curve, tax is an area that cannot be overlooked. Tax strategies can have an enormous impact on your business recovery. When well managed they can be vital in enabling a business turnaround, however when ignored they can eliminate options.
Whether your business is underperforming, stressed or distressed our global network of tax professionals can help you create, preserve or recover value. The global EY network combines local tax knowledge across a broad spectrum of industry sectors, to help you make informed decisions and navigate the tax implications of all your business-critical decisions.
Forging a new chapter of British Steel
Watch how EY quickly mobilized and physically integrated teams across all British Steel’s facilities in the UK, France and Netherlands to get the best outcome for liquidation.
Contact us for immediate support through these volatile and uncertain times
We have a clear view of the critical questions and new answers required for effective crisis management, business resilience and continuity.
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