We provide market leading advisory and support services focused on maximizing recoveries, improving financial performance and resolving structural and financing issues.
Our Reorganization services specialists provide professional, pre-eminent advice to the management and stakeholders of under-performing and financially distressed businesses, leveraging our extensive expertise to maximize recoveries and protect investments.
Our team includes a number of reorganization specialists based in the Middle East with a wide range of skills sets from debt advisory to group restructurings and insolvency ensuring that we always have the right people for the job.
- We are the market leading restructuring and reorganization advisors in the GCC region, with high profile credentials.
- We act for corporates (including family businesses), lenders or other stakeholders and can provide assistance throughout the performance cycle from identifying performance improvement opportunities to providing crisis management in heavily distressed situations.
- Our team consists of experienced global practitioners based locally that have a proven track record of working with our industry experts to protect and enhance value.
- Our approach is to rapidly diagnose, generate solutions and provide hands-on operational and financial reorganization support.
Working across all industry sectors and geographies, our professionals have amassed extensive experience in developing and implementing solutions for clients in both stressed and distressed scenarios, to deliver complex, cross-border reorganization support.
As well as operating across MENA, the Deloitte Middle East Reorganization services team is able to tap into the global Deloitte network of restructuring professionals to handle global reorganization assignments that span multiple jurisdictions.
We assist management and key decision-makers of corporate entities and family businesses in a number of ways that can be tailored to fit the needs of any organization.
- Working with management to ensure that they have the right tools for the job and that critical information is being fed to the decision-makers on a timely basis.
- Making sure that those tasked with making critical decisions can do so proactively based on accurate data, not reactively in the face of a crisis.
- The business doesn’t have to be distressed to benefit if there exist operating inefficiencies and identifying these early could prevent distress at a later date.
Cash and working capital optimization
- Cash tied up inefficiently can result in significant lost opportunities due to illiquidity preventing the business from growing and developing.
- Ineffective working capital policies can result in cash trapped in the business that could otherwise be utilized on profit-generating activities.
- We help management to understand the drivers of cash and cash flows within the organization and identify underperforming areas, inefficient practices and methods by which the company can improve the processes thereby maximizing cash available for investment purposes.
- Turnaround planning to help management identify areas of weakness within an organization and methods by which they can be addressed.
- Helping the decision-makers formulate plans to address underperformance and helping them articulate the plans to key stakeholders.
Corporate restructuring and debt advisory
- Corporate group reorganizations
- Succession planning
- Business planning and formulation of recovery strategies or exit routes. Stress testing (sensitizing) of business plan and compilation of ‘debt’ and ‘equity’ case scenarios
- Stakeholder (lender) negotiation
- Management incentivization plans
- Corporate exit management and group withdrawal from operations and or territories
- Members’ voluntary (solvent) liquidation and corporate simplification to reduce administrative burdens and costs
- When proactive decisions haven’t been made on a timely basis we can assist management in managing crisis situations.
- We are able to act as a sounding board for recovery plans as well as helping devise strategies to potentially avoid disaster.
Company voluntary arrangements
- Where applicable we can help highly distressed organizations prepare and present a formal plan (voluntary arrangement) to its creditors to restructure or forgive debt.
We assist various stakeholder groups such as secured lenders and debt providers through a variety of different approaches.
Refinancing and debt restructuring
- We can help lenders in refinancing negotiations by providing them the data and support they need to make informed decisions.
- We can help them understand where the value breaks and hence the relative positions of the various stakeholder groups.
- This may be performed in conjunction with an independent business review to provide the lender with visibility over the recent trading performance and expect future results.
Independent business reviews (IBRs)
- Independent third-party review of business plans and recovery plans on behalf of concerned stakeholders.
- In conjunction with our Valuations team <link to FAS valuations> and Real Estate team <RE link> we can also helped lenders understand the value of the security they hold.
- Understanding the short-term cash position (13 week cash flow) to ensure that upcoming cash crunch points can be mitigated or managed appropriately.
- We can help lenders understand when facilities are likely to be under pressure or even breached and the possible short-term implications of allowing facilities to be exceeded.
- If required we can assist management in preparing short-term cash flows where such data is not currently produced and give them the tools to continue to manage the cash forecast in the future as well as being able to use it to measure performance.
- Developing a ‘Plan B’ or ‘what if’ scenario analysis to ensure that stakeholders are fully appraised of the options available to them, the steps to implement any given option and the range of potential outcomes therefrom.
- By understanding the options and likely outcomes stakeholders will be better placed to negotiate with other parties including shareholders/alternative lenders and the management team of the business itself.
- Contingency planning in advance of a critical event or deadline can also help maximize recoveries for stakeholders by ensuring that value preserving actions can be rapidly implemented thereby reducing the value erosion that can occur if delays are encountered.
- In certain jurisdictions we will also be able to take formal insolvency appointments.