In light of intense industry rivalry and shifting market dynamics, a business may be forced to rethink its strategy, cut unnecessary costs, and become a leaner, more defensible version of itself. Our Restructuring & Turnaround practice is designed so we can step into situations like these to quickly uncover problems and find ways to best tackle them.
T ough times demand rigor, focus, and discipline. Our Restructuring & Turnaround practice is structured such that we can step in swiftly to uncover problems, identify the “healthy core,” and craft new business models to help management teams focus their attention and execution efforts. Our experience in business model design combined with our corporate finance backgrounds enable us to quickly get down to the root cause of the problems that are threatening the company’s future and develop the optimal solutions that will best address them.
“Trouble shared is trouble halved.”
– Lee Iacocca
“Financial autopsy” is our term for dissecting a business down to it its fundamental drivers to identify the “healthy core” and performance improvement opportunities. This includes assessing operational gaps to improve business processes, implementing specific KPIs to measure progress, eliminating redundancies and waste to free up resources, and analyzing quality of earnings to identify strengths and weaknesses.
Cost reduction involves critically analyzing the company’s cost structure to identify waste and operational inefficiencies that are costing monetary and non-monetary resources. We help companies decompose costs into their main drivers, hedge input prices, turn fixed costs into variable costs where optimal, and transform cost centers into profit centers to drive profitability, reduce turnover, and generate meaningful return on capital.
An organization’s capital structure must be compatible with its revenue and cost model. We ensure this alignment by identifying the optimal mix of debt and equity that minimizes the cost of capital while maximizing free cash flow and profitability.
Maintaining sufficient liquidity for the company to continue operating during its restructuring process requires realistic analysis and is often the primary focus during times of crisis. We help companies build detailed 13-week liquidity forecasts to enhance visibility and predictability of sources and use of cash.