The effects of the 2008 crisis in the world’s major financial markets not only resulted in the collapse of several leading firms, but also resulted in an increasing focus by governments and regulators. The net effect of this has been a considerable increase in regulation and compliance procedures which have changed the sector considerably.
Since this ‘crash’, many financial lending institutions have taken the opportunity to repair balance sheets; however, it is clear that some sections of their portfolios remain exposed and require restructuring and intense management time to get them back on an even keel.
Debts and capital repayments still require careful management and while it is true that many lenders would understandably like to ‘shake the tree’, regulatory constraints have complicated matters and hence more sophisticated solutions and turnaround options are required.
One of the most difficult decisions many lenders face will be whether to call in debts on a particular client and the ability to secure a satisfactory return for their business.
With regulatory factors such as those stipulating no action can be taken against any businesses with which a bank has had interest rate hedging agreements made subsequent to 2001, financial services companies are increasingly seeking out alternative ways of protecting their risk positions.
Our experts have a strong track record in implementing business performance improvement programmes, unlocking value and protecting the value of assets. Of course, timing is everything and effective turnaround plans depend almost entirely upon the moment in the cycle at which a distressed business is brought to our attention. We typically carry out a diagnostic business review and prepare a wide variety of proposals to ensure both the bank and its client have some sensible options to consider.
In early intervention scenarios, we implement a restructuring process designed to analyse, secure and stabilise the business. Where the customer is at a more advanced stage of distress, we will engage at a deeper level with individual creditor arrangements and debt management plans while seeking out alternative markets for the operation as a going concern.
A refinancing option may help banks secure an optimised exit and similarly lenders frequently acknowledge the benefits of our creating an accelerated merger and acquisition prospectus so that suitors interested in bolt-on volume will be attracted to the asset. Our multidisciplinary teams collaborate with the bank and the business to ensure the most satisfactory outcome for both sides, reducing the lender’s exposure in line with their strategy.
We help financial services institutions review their internal procedures to help minimise the risk of losses through fraud or theft. With extensive experience in this field, we are able to identify and pre-empt any potential issues at their core.
With litigation a fact of life for many financial services institutions, we have supported a number of businesses to make their case against, or in defence of, a case. Using technology-driven data analysis tools and expert forensic consulting services, we assist banks and financial institutions in their public disclosure obligations, reviewing relevant documentation and delivering a proportional response.
Our service offerings include:
- Diagnostic business review
- Accelerated merger and acquisition proposals
- Asset valuations
- Optimised exit services
- Litigation support
- Fraud prevention
For further information about our financial services expertise please Contact Us.