Situation
A parent company or investor is seeking an exit from its underperforming or non-core subsidiary/investment and requires assistance with business closure or downsizing initiatives and assessment of key risks, likely costs and management’s capabilities to carry out an exit
What do we do?
- understand reasons for underperformance, and assess merits and risks of turnaround, sale or stepped closure
- preparation of detailed wind-down strategy, including review of key contracts, commercial considerations, operational risks and assessment of financial impact, including costs
- manage the implementation of the wind-down strategy, including assistance in negotiating contract termination settlements, managing reduced activity levels to minimise costs, identify employee issues, realisation of assets and mitigation of liabilities
- finalise accounting and tax issues
What are the benefits to the client?
- The exit of underperforming/non-core businesses can improve overall corporate performance
- Provide expertise to management teams which lack experience in dealing with business closures
- Outsourcing the management of a wind-down enables management to focus on the core business