Distress and crisis is not isolated to only underperforming or loss-making businesses. Many profitable businesses can also encounter difficulties due to inappropriate financial structures introduced as a result of past transactions or in more buoyant times. This is particularly notable in leveraged buy-out situations where the price paid for a business was too high or the business is highly geared and underperforming its current investment plan.
A heavy interest burden and capital repayment profile can become a drain on cash flow and lead to under-investment in the business, ultimately impacting on performance. Intense management of cash flow and stakeholder relations can also prove to be a huge management distraction, whilst actual or threatened default on lending covenants can create growing concern to stakeholders and particularly lenders to the business.
Over time this vicious circle can lead to continued decline and ultimate failure in the absence to a more proactive restructuring plan. Endless can co-ordinate and lead a restructuring plan within a multi-stakeholder environment, introducing fresh capital to fund continued business and / or to reduce debt levels to a more sustainable level.
We have significant experience and a track record of successfully completing complex financial restructurings to rescue value for all stakeholders. Our expertise in business turnaround can also prove invaluable, particularly in instances where underperformance is the root cause of the restructure or has subsequently set in, enabling us to assist in enhancing business performance at the same time as addressing financial structure.