Restructuring for middle market companies
At BDO we have a specific service for companies that are part of the mid-market, designed to address the specific needs of this companies due to our experience and reference advising in this market segment.
Our firm offers advise outlined in 2-3 weeks of work with the company, to understand the main keys of its economic-financial situation, evaluating the options of financial reorganization, operational restructuring, sale of assets or business, as well as rapid measures for the stabilization and cash generation.
As a result of the work, the client will have a clear and defined roadmap to act on the key management and financing elements of the company.
The main areas of action will be:
- Strategic understanding of the business model and strategic plan.
- Commercial and operational analysis. Understanding markets, commercial strength, value chain and support areas.
- Analysis of financial performance. Profitability of business lines, products, geography, as well as balance sheet and financing structure.
- Analysis of the cash position and working capital composition.
- Evaluation of the current financing lines and the necessary requirements to obtain new liquidity.
- Review of options and alternatives:
- Operational restructuring.
- Financial restructuring.
- Sale, spin-off or disinvestment of business units or assets that allow improving the financial situation.
- Rapid stabilization and cash generation initiatives:
- Freezing of products / services with negative margins (if possible).
- Stock reduction plans.
- Staff reduction.
- Evaluation of Interim Management to strengthen executive capacity.
- Review of providers payment plans.
- Obtaining new financing lines for working capital.
- Evaluation of sustainable debt.
- Preparation of the final report and the roadmap.