Strategy & Corporate Finance

Our Corporate Restructuring practice is dedicated to support our clients to manage their Balance Sheet, both the Asset side (Operational restructuring) and/or the Financing Side (Financial Restructuring). This strategic maneuver is often undertaken to improve a company’s profitability, address financial distress, or adapt to market changes. Whatever the reason behind, given the stakes involved, navigating corporate restructuring requires the right technical skillset, comprehensive understanding of the process, planning, and execution, all combined with superb communication and deal making skills.  

1. Operational Restructuring: Involves an intervention in the Asset side of the balance sheet in order to improve the Company´s Performance, Capital Allocation and Portfolio Strategic Fit. It also works to attend Anti-Trust Requirements and support Financial restructuring efforts.
   1. Divestiture:
   2. Equity Carve-outs
   3. Spin-offs
   4. Split-offs
   5. Split-ups 
   6. Liquidations

2. Financial Restructuring Involves the management of the Financing Aspect of the company balance sheet, demanding changes in the capital structure of the company, including debt and/or equity restructuring
   1. Debt Restructuring: We assess the current situation of the business and its debt-carrying capacity and assist to formulate restructuring proposals that effectively match (timing, quantum, currency etc.) the company’s debt repayment obligations to its cashflows.
      1. Refinancing and Debt Rescheduling
      2. Debt-for-equity Swaps  
      3. Debt Holder Haircuts
   2. Equity Restructuring: We assess the current ownership structure of a company and formulate a restructuring proposal aiming to reduce the cost of capital, increase the value of the firm, or align the interests of shareholders and managers and avoid or exit bankruptcy.
      1. New share Issue
      2. Share Buy-Backs
      3. Equity-for-Debt Swaps

Corporate Restructuring Process: The restructuring process is intricate and requires meticulous planning and execution. The following steps outline a typical restructuring process:

1. Assessing the Need for Restructuring: The first step is to conduct a thorough assessment of the company’s current situation. This involves analyzing financial statements, operational performance, market conditions, and competitive landscape to identify the need for restructuring.
2. Defining the Objectives: Clearly defining the objectives of the restructuring is crucial. Objectives may include improving financial health, enhancing operational efficiency, achieving growth, or addressing specific challenges.
3. Developing a Restructuring Plan: A detailed restructuring plan should be developed, outlining the specific actions to be taken, timelines, resource requirements, and expected outcomes. The plan should address all aspects of restructuring, including financial, operational, and organizational changes.

Stakeholder Communication

Effective communication with stakeholders, including employees, investors, creditors, and customers, is essential. Transparent communication helps manage expectations and gain support for the restructuring process.

Implementing the Plan

Implementation involves executing the restructuring plan as per the defined timelines and strategies. This may include financial reengineering, operational changes, workforce adjustments, and divestitures or acquisitions.

Monitoring and Evaluation

Continuous monitoring and evaluation of the restructuring process are necessary to ensure that the objectives are being met. Adjustments may be required based on the progress and any unforeseen challenges