Debt Owners, Debt Buyers and Direct Lenders if you can answer yes to any of these questions, call us before it is too late
Are you seeking debt acquisition opportunities – either single tickets or portfolios?
Do you have troublesome non-performing loan (NPL) portfolios where you require assistance in the strategic management of the same in order to preserve and extract the best returns/recoveries possible?
Are you looking to strengthen your own processes and governance around NPL-management?
Are you looking to offload single ticket situations from your debt portfolios?
Is your ability to extract value from identified exposures affected by a lack of visibility of the underlying debtor business and/or a need to address that business’ financial performance?
As a direct lender, either secured, asset-based or unsecured, the value of the debt can be seriously impaired by poor performance and insolvency risk. Establishing the level of risk, the effectiveness of management business plans or of management capability is critical to determining actions to minimise potential losses or maximise recoveries. With legal advice, the level of influence that can be brought to bear on management actions can be established. However, getting an accurate assessment of plans and management capability whilst actually dealing with problems concurrent with assessments, thus saving time and money, requires both operational and financial expertise. We can act in a variety of capacities, depending on the leverage of the lender, to address business problems, either as a Chief Restructuring Officer or as a Performance Improvement Manager, and start the recovery process at the earliest stage possible.
The earlier the action and the more experienced and hands-on the professional advisors, the better the chance of recovery.
If you are a debt owner or a prospective buyer of debt and wish to use the debt in a loan to own transaction, the ultimate outcome of the transaction will depend on your confidence in the management team to deliver the improvements to the underlying business. Probably the incumbent management have been responsible in whole or in part for the business decline, but to act in haste may be to lose necessary skills. We can provide short-term or longer-term management support and evaluation in the early stages of the acquisition, enabling a buyer to assemble a management team more capable of delivering the business potential.
Notes, insights and reflections from Matthew, one of our directors and turnaround experts, as he works with companies during Lockdown.