The past four years have arguably seen the most difficult trading conditions for the whole of the global construction and real estate sector. What were seen as cast-iron speculative investment projects were cancelled overnight, or at best mothballed indefinitely.
There were very few parts of the construction sector which were unaffected by the global recession, with previously ‘gold-plated’ contracts within the public sector falling victim, as central government cut publicly funded projects.
Our geographical coverage and expertise means we have first-hand experience of advising all sizes of distressed construction businesses. This advice is broad-based, encompassing everything from strategic development opportunities and financial modelling of key development projects through to a full restructuring and turnaround exercise.
For troubled companies in the construction sector, reviewing their business models and balancing the desire for profitability with immediate cash flow requirements is essential. The mood to consolidate presents new opportunities for healthy businesses and a lifeline for builders, contractors and suppliers with expertise and market share but a lack of available funds.
Getting a good deal by sacrificing short-term cash flow can prove disastrous. Our clients rely on our advice to implement good business practices and to establish sound operational principles that will ensure the long-term health of the business. We can help introduce the right level of in-house financial and accounting expertise – ensuring that spend is closely managed and that savings are achieved wherever possible.
The temptation to do things the way they have always been done can be the undoing of a business. Following a comprehensive health check to identify areas of improvement, we are able to put forward suggestions for where processes can be streamlined and where costs can be reduced. Whether it means reviewing leases, changing payment terms and negotiating more competitive prices from suppliers, we have the expertise to maximise potential values.
Strategic Partnerships and M&A
Although these are tough times for the construction sector, the need to evolve and adjust has never been greater. Achieving economies of scale through mergers and acquisitions is a route we are actively exploring with a number of our construction clients, as they look to extend their share of the market and remain competitive. In addition we have a track record of working with clients to explore potential areas of growth and identify new sources of revenue.
Cost-conscious businesses that maintain a watchful eye on their finances stand a better chance of success. But cutting costs and reducing overheads without jeopardising the quality of the end product can be a challenge – not least when it comes to evaluating the workforce. Under our supervision, construction companies have successfully reduced wages without the need for redundancies.
Unfortunately, the construction sector is one of the most vulnerable to fraud and financial malpractice. Our specialist risk team have an enviable track record of working with businesses within this sector to minimise losses. Our technology, forensic and risk management teams are able to identify financial leakages, reduce the risk of fraud and implement risk management procedures to reduce on-site losses and theft of materials and machinery. On behalf of a variety of major construction companies, we have carried out data-driven analysis and investigations leading to the recovery of millions of pounds worth of stolen equipment, while helping avoid significant risks such as fraudulent stock management.
By being involved at the planning stages of new build projects, we can incorporate security systems that will significantly reduce the risk of theft, vandalism and terrorism. We work alongside architects to design technology, layout and procedures that are low cost and highly effective.
Our advice includes:
- Mergers and acquisitions
- Supplier reviews and analysis
- Cash flow management plans
- Risk management and asset recovery
- Lease negotiations and reductions
- Workforce improvements
For further information about our construction expertise please Contact Us.