Many organisations face a combination of commercial, operational and financial distress that may be manifesting through declining product profitability, high fixed costs, budget cuts, under-utilised staff, covenant breaches and cash flow challenges, in addition to rapidly changing customer needs and competitor landscape.
Historically, operational restructuring programmes were looked at as something which only significantly underperforming businesses, or those in distress, needed to consider. In the current environment, launching an operational optimisation programme signals to stakeholders that management can take rapid and decisive actions, setting them apart from their competitors and enabling them to continue to invest in key growth areas that will set the business up for future success. This agility and strategic opportunism is essential not only to a fast recovery, but for emerging even stronger than before.
PwC’s Operational Restructuring team helps you take action quickly to generate results, drive rapid cost and cash improvements, and help you keep your options open.
We achieve this by working alongside management to:
Deliver rapid improvements in cash, working capital and profitability
Develop and implement plans which are realistic and pragmatic
Issues you may be facing
When you are:
Undertaking a big investment
Preparing for or just concluding a Merger and Acquisition (M&A)
Sourcing funding for new projects
Looking to streamline operations
Looking to safeguard the future of your business/organisation
Looking to strengthen their finance department
and are experiencing:
Rising costs and shrinking margins
Working capital constraints, inconsistent working capital cycles and/or overleveraged
Reliance on mismatched or expensive debt for financing
Significant lack of short-term liquidity and no accurate short-term view of cash
Loss of key staff members and/or customers
Difficulties in forecasting cash requirements
Limited reporting on cash performance and KPIs
How we can help
- Cost Baselining
- Cashflow Forecasting and Analysis
- Interim Management / Chief Restructuring Officer (CRO)
- Corporate Simplification / Managed Exits
Cost Baselining
Working capital optimisation and management
Earnings Before Interest, Tax, Depreciation and Amortisation (EBITDA) stabilisation programs
Cashflow cycle management
Improvement of business cash flows
Improved cash utilisation
Cashflow Forecasting and Analysis
Evaluation of existing short and medium-term cashflow forecasts
Assisting management in developing short to medium-term liquidity forecasts where there are none
Interim Management / Chief Restructuring Officer (CRO)
Introduction of experienced professionals who can step into executive/advisory roles within organisations to drive rapid change or manage financial pressures
Identifying causes of distress to implement turnaround work streams
Developing and executing your restructuring/turnaround plan
Advising/mentoring boards, CEOs and CFOs on weaknesses in governance, financial reporting systems
Improving profitability, including rapid cost reduction
Stakeholder management
Crisis management
Creating tech solutions
ESG transformation programmes
Corporate Simplification / Managed Exits
Independent assessment of options (e.g., accelerated sale, turnaround or exit)
Evaluation of suitable exit routes to identify the optimal exit strategy
Development of a formal step plan, identifying key milestones and development of an exit timetable
Expected outcomes:
Improved profitability and cash management
Optimised working capital utilisation
Cost reduction
Improved governance and informed decision making
Creation and preservation of value (during exit, transaction or wind down preparations)
Contact us
Partner | Deals, Business Restructuring Services Leader, East Africa region, PwC Kenya
Tel: +254 (20) 285 5000
