EY Restructuring provides leadership in difficult and complex situations to rapidly solve, execute and ultimately transform the outcome. Delivered globally - connected locally, fully digitally enabled and built on deep sector experience.
Each restructuring scenario calls for different professional skills, and we offer a broad range of services that are tailored to your individual situation to help you evaluate opportunities, put together the most effective restructuring plan, improve transactions and achieve your strategic goals.
Our restructuring services include:
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.
How we can help:
We work with all stakeholders to preserve, create and realise value, through:
- Restructuring advice: On lender negotiations, covenant resets, recapitalisations, capital raising, debt for equity, distressed/accelerated M&A and other special situations, including in-court and out-of-court transactions.
- Critical appraisal of a company’s ongoing viability: including Independent Business Reviews (IBR), 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 enable 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 stabilisation 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 (EPA): 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 break-up. This provides the value break analysis under differing scenarios (including in-court and out-of-court), to inform decisions about ongoing exposure and investment.
We help companies and investors improve their total expected return in times of uncertainty and deteriorating performance and growth. We support you in managing work-out or turn-around processes and in allocating capital and investment — evaluating your business plans objectively. We also devise strategies to address potential covenant breaches, negotiating with stakeholders and complying with insolvency and other requirements.
How we can help:
- Board support and leadership: From acting as Financial Advisor to hands on support such as taking Board level appointments, for example as Chief Restructuring Officer (CRO). Providing guidance and a clarity of thinking drawn from our insights and deep experience of leading restructurings for over 40 years.
- Stabilise: Creating the breathing space and platform to address the challenges through rapid intervention, with a focus on pace and impact to create the necessary grip and control, whilst securing common internal and external stakeholder understanding and buy-in.
- Turnaround: Working with management to identify and prioritise value protection and creation opportunities, the resources, rigour and step plans necessary to deliver these, with the necessary financial restructuring to ensure plans are underpinned by a sustainable capital structure.
- Transform: Creating and maintaining momentum – from the initial intervention and turnaround initiatives brought by the restructuring approach, to building and executing a clear medium- to longer-term strategy and value creation plan, through to ultimate exit and value realisation.
We help you improve cash flows and release value in current capital accounts (receivables, payables, inventories), thereby improving overall liquidity and offering effective strategies for managing credit lines.
How we can help:
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 them develop the three main ingredients of strong working capital management:
- Identification of cash generating opportunities: We have a track record identifying cash generation opportunities of between 5% and 15% of annual revenues. Our global practice has delivered more than US$40bn of increased cash flow for our clients over the last 10 years.
- Cash flow forecasting: We have experience building and analysing cash flow forecasts to either clarify short term liquidity requirements or help navigate medium to long-term fund flows.
- Visibility and control: We use a wide range of analytical techniques to rapidly identify drivers of opportunity and areas for further focus, including using interactive digital visualisations. Our analytics identify, evaluate and communicate key issues to management and the wider business, and can be provided on an ongoing basis, hosted and managed by us.
Group structures can become increasingly complex through acquisitions, mergers, joint ventures and organic growth. This can lead to increased costs, as well as difficulties managing risk, simplifying operations, improving transparency, and complying with changing regulation.
We have experience supporting the complete spectrum of organisations, whether large multi-national companies seeking to reduce their global entity footprint, or a small domestic organisation looking to remove a single entity from their structure for a specific purpose. Our team integrates restructuring, tax and financial advisory knowledge to help organisations assess, rationalise and simplify their legal entity structure across the key phases of corporate simplification.
We work with you to develop optimal and flexible debt and equity capital structures and competitive financing programs. We analyze the choices, present you with the alternatives and offer recommendations.
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 ‘stick’ 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 using extensive experience of a multitude of African and cross-border insolvency solutions. How we can help:
We work with management and financial stakeholders to use the pace, protection, powers and flexibility available under insolvency law 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, stabilising critical services and protecting jobs
- Providing a controlled exit
If you need to choose whether to fix or exit a business, EY Restructuring can help you execute better decisions and transform the outcome.
Multimillion cash benefit realised
EY delivered sustainable working capital improvements for a leading global supply chain management company. This realised a multi-million cash benefit through a global change programme, accelerated using a series of interactive dashboards and technological solutions.
Remember when acting fast meant relying on instinct?
Find out how EY's Restructuring team uses accelerated data analytics to help you plan your next move. Combining your intuition with fast facts to transform the outcome.
CRO in the spotlight for successful cross-border restructuring
EY Restructuring acts as CRO and holds statutory board roles on over 40 companies in a $485m bond restructuring. Involved strategic enforcement through BVI liquidation process, a $230m debt for equity swap and a $35m new money facility.
Could uncertainty be your best opportunity for growth?
Complex, post- acquisition corporate simplification
A multi-service line EY team led by EY Restructuring delivered a complex corporate simplification programme to eliminate 186 entities across 68 jurisdictions, mitigating significant integration costs and reducing global complexity following a large scale acquisition.
How can restructuring today (re)shape tomorrow?
Whether stressed or distressed, companies need to ensure they are fit to succeed in a disrupted environment.
Critical infrastructure provider
EY was financial advisor to the provider's £1.8bn senior secured lenders in connection with a restructuring of facilities and subsequent sale to a global communications group.
Why do uncertain times need the certainty of purpose?
Rapid stabilisation of a failing business
a EY Restructuring stabilised a failing engineering and landscaping business in Scotland, ultimately resulting in a pre-pack administration sale which saved 250 jobs and led to the full repayment of both fixed charge security holders and preferential creditors.
Unwelcome disruption or transformational opportunity?
PFI – full repayment
Lead financial advisor to lenders in respect of a consensual termination of a major PFI situation in the waste sector.