The global media and entertainment sector has witnessed a seismic change over the past decade, with digital media completely changing the traditional revenue model for many of the key players in this sector. Businesses who were dependent on a purely print and offline model have witnessed advertising revenues diminish at an alarming rate, whilst those at the forefront of the digital revolution rapidly took market share. Such was the speed of this change that even established names such as Kodak were unable to change their model fast enough to adapt.
Our experience means that we can add value to both distressed businesses who are struggling to deal with structural changes within the market and diminishing revenues streams, as well as businesses that need strategic advice on future developments.
First and foremost, business owners want to protect their companies and staff. However, facing up to creditors can be a daunting task even for the most battle-hardened competitor. In our experience, the media and entertainment supply chain features a range of dynamics that in a distressed situation can seem beyond the means of small and medium-sized enterprises. Fixed payment terms imposed by large distributors, commissioning bodies or platform providers at the top of the chain often leave no ‘wriggle room’ with many businesses caught in the middle.
Our credibility and situational experience enables us to step into the breach and carry out lender and creditor negotiations on behalf of media and entertainment firms: debt can be restructured, cash flow can be stabilised and a company’s immediate liabilities can be managed on much more favourable terms. With the support of BTG Financial Consulting intermediaries, media and entertainment businesses can add weight and credibility to their negotiations with creditors, making new payment proposals far more likely to be accepted.
Our restructuring services and consulting advice also extend to businesses at less advanced stages of distress. For example, as a result of a consolidation boom during the last two decades many larger businesses have developed complex structures through merger or acquisition. We have significant expertise in the area of corporate simplification – effectively de-risking a company’s operations by consolidating companies into a manageable construct.
Crisis Management and Fraud Prevention
Even the most competent media business isn’t immune to crisis. Our team have considerable experience of working hand in hand with media advisers and spokespeople to ensure that they are fully briefed and in a position of knowledge before speaking on behalf of organisations at the most challenging time. In addition, we are regularly called upon to assist media owners in investigating and clamping down on fraudulent advertising activity and in bringing the guilty parties to justice.
We are also becoming increasingly involved in media brand protection. The prevalence of counterfeit products and genuine product diversion has risen considerably over the past five years, and we are regularly instructed to identify the supply networks including the companies and individuals at the heart of the activity in order to protect a brand’s position.
Our advice includes:
- Lender and creditor negotiation
- Cash stabilisation
- Intellectual property investigations
- Corporate simplification
- Strategic planning
- Fraud investigations
- Media briefings and knowledge management
For further information about our media and entertainment expertise please Contact Us.