Corporate restructuring CORPORATE RESTRUCTURING

Taking stock, a comprehensive review of company
In-depth study of the company, its general financial situation and that of the sector, situation compared to competitors, product competitiveness, company weaknesses and problem areas worsened during company crisis.

All procedures, suppliers, employees, corporate structure, business divisions and even some clients will be examined, in order to find workable, realistic solutions:

  • A company master plan to overcome the crisis. The plan includes very short term (1 to 3 months), short term (3 to 12 months) and medium term (1 to 3 years) strategies
  • Break-even points. The business lines that must be eliminated for company survival, and those that will remain.
  • Identify absolutely necessary personnel, who also should be the most qualified
  • Adjust company activity to its financial possibilities
  • Establish payment and collections policy (cash flow planning)
  • Design commercial plan for remaining business lines.
  • After new company size and direction is clarified, we propose short, medium and long-term investment plans.

Cost Reduction and Cost Efficiency
Both are much needed during times of crisis. Our cost reduction service consists of:

  • Analysis of company production processes
  • Analysis of similar products offered by competitors
  • Report suggesting actions to improve competitiveness and production times
  • Action plan on main operational levers affecting EBITDA (strategy, competition, organization, management team, processes, products, clients and suppliers).

Restructuring
Restructuring and viability plans.

  • Restructuring scenarios and options
  • Interim management supporting plan implementation.

Cash-Flow Management

  • Optimization of incoming-outgoing / procurement-logistics-payments. Business model based cash-flow. Maximum procurement leveraging
  • Interim management and cash-flow efficiency, to gain time during crisis
  • Determination of short and medium term cash-flow needs.

Refinancing

  • Preparation of cash-flow feasibility plans
  • Strategic planning, and alternatives to financial institutions
  • Negotiation with credit entities
  • Alternative financing: Restructuring Funds, Private Investment.

Advice during insolvency

  • Advice and refloating or closure strategies, paperwork filing with authorities
  • Assistance throughout insolvency proceedings; advice and interim management, negotiations with involved parties.

Liquidations and closures

  • Orderly liquidation and closure processes. We can take care of every aspect.
  • Partial Spin-offs

Interim Management
While most company crises are due to outside factors (market, competition, new legislation), they can also be caused from within, by poor management leading to drops in market competitiveness.

For these situations, Legal y Económico can provide:

  • Interim outside managers to lead the restructuring process, freeing companies executives and managers to attend to day-to-day business
  • Advisors to Board of Directors
  • Company expansion and changes.
    1. Restructuring and feasibility plans
    2. Operational restructuring
    3. Refinancing
    4. Cash Management:

    * Determination of cash-flow needs during refinancing.
    * Control and cash management after refinancing.

  • Crisis Situations
    1. Restructuring and feasibility plans.
    2. Operational restructuring
    3. Refinancing
    4. Cash and Cash-flow Management:
      * Determination of cash-flow needs during refinancing.
      * Control and cash management after refinancing.
  • Bankruptcy and Insolvency
    1. Assistance in bankruptcy negotiations
    2. Support or full insolvency administration during process
    3. Ongoing Cash Management
    4. Complete daily administrative assistance during procedure
    5. Cost reduction actions
    6. Financial restructuring: Feasibility plan, proposals for agreement and management of proposals accepted.
    7. Divestment of non-principal business lines.
    8. Execution of liquidation plans

beatriz1

pedro1

Central Office in Spain

Calle Monte Esquinza, No. 24 – 3º izda. 28010 – Madrid
Tel.:(+34) 91 758 75 12 Fax: (+34) 91 559 97 29