Preserving stakeholder value
Stakeholders are asked to respond quickly when businesses underperform or suffer liquidity shortfalls or value erosion. We provide leadership in difficult and complex situations to rapidly solve, execute and ultimately transform the outcome.
What EY can do for you
We work with all stakeholders to preserve, create and realize value through:
- Restructuring advice: This is given on lender negotiations, covenant resets, recapitalizations, capital raising, debt for equity, distressed or accelerated M&A and other special situations, including in-court and out-of-court transactions.
- Critical appraisal of a company’s ongoing viability: It includes independent business reviews, using advanced data analytics to determine the cause of underperformance and where value and cash is generated or lost, creating a common reliable “fact pack” to help focus on issues rather than concern over information quality and transparency.
- Stakeholder intermediation: When there are multiple external and internal stakeholders (including creditors, lenders, employees, unions, suppliers, customers, regulators and shareholders), they will have differing and sometimes conflicting priorities, as well as contractual rights. Bridging this gap, building trust and agreement around options is critical to stabilization and securing a consensus.
- Options analysis: Understanding the range and implications of the available options informs stakeholders on how to mitigate risk and preserve value in the time available.
- Entity priority analysis: Through analysis of a group’s corporate, legal, financial and operational structure, together with jurisdictional implications, we help stakeholders fully understand how value would flow to different stakeholders from a going concern transaction through to a breakup. This provides the value break analysis under differing scenarios (including in-court and out-of-court) to inform decisions about ongoing exposure and investment.