There are several reasons (financial and non-financial) that may trigger the need for financial restructuring, such as: a company is in financial difficulty when it cannot pay its debt (financial or commercial) or breaches covenants.
In such distressed situations, stakeholders (debtors and lenders) want to protect their position and provide a stable platform to the company. KPMG’s Deal Advisory partners and professionals across its member firms are forward-looking specialists who combine strategic financial advice and deep sector knowledge with the foresight that comes from experience. We help you create an action plan for the pre and post financial restructuring process, along with contingency plans. We also provide strategic financial advice for fast decision making, assessing short-term liquidity requirements, and consider actions to quickly preserve value.
We are objective third-party advisors, combining quick strategic advice on the situation and the solution. We do this by providing detail analysis based on an independent business review and cash flow forecast of the company. We identify appropriate debt restructuring options in terms of value for the different stakeholders, arranging and achieving financial close involving all the different stakeholders. We also take a leading financial advisory role, with a deep knowledge of the different pre-insolvency legislations to help the agreement take place.
Our global network of Deal Advisory professionals help solve complex problems or implement improvements, all the while helping you focus on the key questions that will strengthen your financial performance.
- Do I have enough funding to keep operating while a solution is being developed and implemented?
- Do I know what has gone wrong and how to fix it?
- What sustainable capital/debt structure offers the best prospects of success?
- How do I reconcile all stakeholder positions to implement the new debt/capital structure?
- What will be the role of the alternative capital/debt providers in the solution
- How do I ensure that the business is supported through its recovery?
- How can the different pre-insolvency legislations help to get the financial restructuring agreement in place?