Restructuring and Turnaround

Our typical clients are private equity buyout funds and family investment offices who look to conduct drastic restructuring and turnaround projects for their portfolio companies to enhance value creation. We also support the normal manufacturing industries for their restructuring and turnaround projects.

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Our approach –

 

The decision to conduct restructuring and turnaround projects affects multiple areas of the company. The financial investment involved is often substantial. Add to this the need to weigh up the conflicting priorities of different voices within the company, the requirements of customers, and the uncertainty of external factors such as government subsidies, local taxes and labour costs at different sites, and the difficulty of reaching a decision that you can be confident of is self-evident. 

 

We follow 3 steps when supporting your restructuring and turnaround projects – strategic definition, business case review, tactical implementation plan creation. For easier demonstration, we use manufacturing plant relocation as a restructuring and turnaround example.

 

Strategy definition is a step which ensures the manufacturing relocation initiative in line with your overall company strategy. Are we reducing costs through consolidation/ rationalization? Are we targeting further growth? Or are we simply balancing risks? We will define a reasonable and value creating initiative with you. Then, we will review the business case including calculation of one-off costs and recurrent savings, as well as calculation of project IRR/ payback – all in line with your company’s internal financial rules. Once project is approved, we will manage project execution. We manage execution by establishing project organization (including PMO) and governance, transparentizing project RACI, and driving interlinked workstreams execution.