Restructuring and turnaround strategy
Today’s disruption will require organisations to reshape. Strategic change focusing on financial and business restructuring or turnaround must be implemented with speed and certainty. We provide trusted leadership in critical and complex situations to transform, create, preserve and recover value.
What EY restructuring and turnaround strategy teams can do for you
As part of EY-Parthenon, our financial and business restructuring professionals support EY clients, from design to delivery, focusing on practical solutions that yield measurable results.
Organisations across the globe are facing an unprecedented array of challenges. These threats come in many forms whether they be weakened balance sheets, uncertainty over COVID-19 recovery curves, challenges of operating in a virtual environment, macroeconomic or geopolitical changes, competitor innovation or changing stakeholder expectations.
When time is important, our experienced problem-solvers provide restructuring advisory to move quickly from ideas to implementation. With access to an unrivalled bench of restructuring and turnaround professionals with industry experience, our global reach and rapid local reaction teams mean that our professionals can be quickly deployed wherever they are needed.
Connected globally, delivered locally and digitally enabled, our restructuring and turnaround strategy team is supported by a broad range of EY tools and technologies. EY M&A tools: Connected Capital Technologies help EY professionals deliver actional insights at a faster pace and deeper level than before, helping to ensure we can provide value to our clients.
We can help you answer common turnaround and restructuring challenges including:
- How can I rapidly improve the financial and operational performance of my business?
- Who can help me develop options for a rapid turnaround, rescue, recovery or contingency plan; then help me find capital to support it and negotiate with my stakeholders?
- Who can help me lead the restructuring, or offer interim management roles such as Chief Restructuring Officer (CRO) or Chief Restructuring Advisor (CRA)?
- How can I make more informed decisions about working capital and liquidity management?
- Who can help me take an investor lens view to my portfolio evaluation?
- How can I reshape the business model through business redesign?
- How do I make strategic decisions in times of ambiguity and uncertainty?
- How can I ensure that my tax strategy will maximize value in my turnaround plan?
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 the survival of a business.
Group structures can become increasingly complex over time, leading to increased costs and risks.
We have experience supporting the complete spectrum of organisations in simplifying their corporate structure. Our team integrates restructuring, tax and financial advisory knowledge to help organisations 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.
Especially in times of uncertainty and disruption, 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 organisation 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 organisation 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 and communications 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 recover 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 achieved by a combination of selling non-core assets or business units to generate cash, attracting new capital and rescheduling or retiring existing obligations. Our team is experienced in helping you prepare proposals, obtain stakeholder support and execute the transaction.
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 a network of 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 underperforming or stressed businesses to develop and implement operational strategies to drive rapid performance improvement.
Private equity (PE) firms are increasingly required to identify and deliver operational improvements to achieve targeted returns.
Our value creation leaders provide hands-on support, from strategy to implementation, to help PE companies accelerate cash and profit improvements and deliver their investment case. Our PE team has extensive experience in complex carve-outs, functional transformations, and instances of stress or distress.
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.
At whatever stage an organisation 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.
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.
Restructuring and turnaround awards and recognition
Some of the recent awards won by member firms of Ernst & Young Global Limited include: