Strategic options review
In difficult situations, making the right decision can be lifesaving for companies. Depending on the client’s specific needs, our team delivers detailed assessment and tangible recommendations, related to:
- Situation analysis with focus on immediate operational and financial threats to the business
- Assessment of the main causes for operational underperformance to address critical areas in the short term
- Review of partnership opportunities with the aim of identifying and attracting the most suitable strategic or financial investor
- Assessment of the need for capital structure optimization in order to refinance or restructure existing debt and introduce alternative financing options
We provide solutions for businesses troubled by inappropriate capital structures and/or challenging economic or industry conditions. Our advice has helped provide such businesses with more stable capital structures and ultimately more financial flexibility.
The strongest tool RSM can provide in support of a debt renegotiation is a plan that demonstrates to a client’s lenders a deep working knowledge of the mechanisms available to steer the business. The plan must be detailed and robust enough to model a range of assumptions and sensitivities and enable the client to present a compelling business case to lenders and other constituents. The centerpiece of the plan is a cash flow forecast that, in addition to fostering compelling communications with lenders, is a vital operating tool for the client.
Our seasoned professionals are well equipped to analyze a business situation and present viable options to the board and lenders. All options are vetted, including asset reallocation, cost reduction initiatives, and reorganization. We also examine all contributing macroeconomic and market condition factors that are adversely affecting the company’s income statement and liquidity constraints.
Most important, we have the capability to produce—under short notice—pertinent facts and options for lenders. We realize that lenders want answers “yesterday.” Our team can be on the ground immediately to address the issues and respond to a client’s board and lenders at the earliest possible time—with credible analyses and options.
Additionally, our contacts with lenders are extensive. We have established credibility within this community through demonstrated, proven, and successful results, when it really matters.