Corporate Recovery Services
 Assessment of the economic and financial situation and conceivable options
Your challenges
As a company director and/or shareholder, you have detected the first signs of a crisis within:
- Your company
- Your group
- A subsidiary of your group
- An investment of your investment portfolio
- One of your strategic clients or suppliers
Depending on the remaining timeframe and available resources, there are several conceivable solutions with very different operational and financial outcomes:
- Out-of-court liquidation
- Operational and/or financial restructuring
- Pure and simple disposal
- Restructuring and disposal
In such a context, making the right decisions requires a preliminary in-depth assessment of the financial situation, in order to carefully measure the challenges and financial risks of each situation.
Key success factors of such an assessment are:
- Complete analysis of the current economic and financial situation
- Identifying possible operating turnaround leverages to return to a profitable economic model
- Drawing up financial estimates according to identified leverages and estimating corresponding requirements
- Measuring financial impact and risks linked to the various possible scenarios
Our solutions
Working closely with your teams, we assist you throughout the assessment process in the following manner:
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Analysis of the economic environment (market-competitors)
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Analysis of the company's markets
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Size and drivers of the markets
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Competitor strategies and market shares of each player
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Key success factors
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Opportunities and threats
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Etc.
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Presentation of company positioning and organisation
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Analysis of the product-price offer
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Communication and distribution strategy
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Production tool and supply management
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Innovation capacity
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Infrastructure and human relations organisation
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Etc.
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Analysis of the cause of the difficulties
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Internal
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Organisation and management issues
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Ineffective marketing or lack of anticipation
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Weight of financial debt
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Lack of financial visibility
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Etc.
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External
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Intensity of competition
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Pressure on prices
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Loss of a major client
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Rise in the cost of raw materials
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Etc.
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Key assets: brands, patents, key people, equipment, contracts, information systems, etc.
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Company strengths and weaknesses
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Identifying conceivable turnaround leverage
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Changing the product palette
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Cost and/or working capital reduction plan
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Improving management
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Disposal of assets
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Etc.
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Detailed analysis of historical financial statements (P&L, balance sheet and cash flow statement), as well as the impact of the economic environment or of past strategies on financial statements and economic environment:
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Breakdown of the effects of volume and price
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Analysis of turnover and margins per activity
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Productivity development
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Development of operating costs
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Working capital and seasonality analysis
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Short and long term debt analysis
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Investment development
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Off-balance sheet commitments
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Etc.
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Defining monthly financial forecasts using conceivable turnaround leverage as well as future company strategy
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Modelling the economic plan as well as relevant variables: volume, price, margin rates, direct and indirect costs, variable and fixed costs, working capital timeframe, etc.
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Quantification of projected assumptions, consistent with historical data
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Creating financial statements based on accounting principles in effect (P&L, balance sheet and cash flow statement)
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Estimating monthly cash flow requirements
According to the specificities of each case, the perimeter for assessment may be tailored to suit the client's specific needs.
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