Business Restructuring
What is Restructuring?
Restructuring involves significantly modifying the debt, operations and structure of a company as a way of counteracting financial decline and placing the business back on a trajectory towards sustainable profitability. Changes implemented can be related to debt and capital structure, operational, financial, legal and/or ownership. Business restructuring is necessary where profits are diminishing or losses increasing through financial and operational challenges, usually placing pressure on the cash flow and debt-serviceability of the company.
How do we do it?
We engage with all relevant stakeholders and work alongside management and advisors to arrive at the most optimal solutions to financial and operational challenges to ensure positive sustainable outcomes within the shortest reasonable timeframe.
We endeavour to obtain an in-depth understanding of the business and the factors causing its distress, whereafter we formulate a detailed turnaround plan which we present to stakeholders for consideration, discussion, negotiation and approval. Once approved, we spearhead the implementation of the plan in collaboration with management and advisors.
Why EBT?
As a turnaround organisation there are few, if any, of our clients where a business restructure is not required. With the right set of interventions, effectively executed, most distressed businesses can be effectively restructured to reverse financial distress and deliver improved returns, as long as there is still a market for its product or service.
Is this the right solution for you?
Growth outstripping cash resources.
Declining profitability and margins.
Inefficient production.
Inappropriate input and output pricing structures.
Inefficient or excessive workforce.
Here are some of the scenarios where a restructure of the business may be beneficial:
Ineffective cash flow management
Collapse of a major customer leading to bad debt.
Disruption in operations through external forces.
Liquidity and cash flow stress.
Breach of funding covenants.
If you are under threat of losing your business due to a loss of revenue, shortage of capital, outdated systems and plant, skill gaps, legislative changes, labour issues, inefficient operations, capacity constraints, escalating costs or continuing losses in other words, anything causing financial distress, then contact us for a no obligation meeting.