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Reorganization services

The economic downturn in both local and worldwide markets means that all businesses need to reassess their individual prospects and altered opportunities, and also adapt their funding to meet the constraints of the marketplace. Now is the time to reorganize activities around core businesses and competencies, renegotiate funding arrangements and dispose of peripheral activities which are not generating sufficient value.

The last year and a half has seen unprecedented change in the CIS market. Revenues have been hit by substantial falls in both demand and prices whilst new commercial credit has almost disappeared. The ruble has depreciated against both the dollar and the euro, generating continued inflation, albeit at reducing rates.

Businesses have therefore had to react quickly to their new circumstances through a combination of downsizing, reducing working capital, seeking to defer debt repayments and, at the extreme, temporary closures. A general recovery in domestic demand still appears some way off so the various short term responses to the crisis now have to become more permanent.

Clients are now having to consider the following:

  • Which of their businesses are core activities and involve key skills or competencies critical to the future success of the business?
  • Which of their businesses need investment and development to optimize added value generated?
  • Which business processes are in need of reengineering?
  • What are the future funding needs of the business?
  • How can management deleverage the business and what is the appropriate funding structure for the business going forward?
  • Which elements of the business are not critical or are not adding value and would be better disposed of?
  • What assets can be realized to help generate funds for the core operations?
  • Do the business' management have the necessary skills or experience to carry out this analysis?
  • Does management need assistance from outside consultants and advisors?
Deloitte solution

Our restructuring team can assist clients in three main ways:

  • We can bring industry sector and financial restructuring experts together to help investors and management review the options for their business and manage the strategy and funding review process
  • We can assist businesses in planning and executing their refinancing
  • We can help businesses dispose of non-core or surplus assets to generate funds for use in the rest of the business
Key benefits for our clients

A fresh look at the strengths and weaknesses of a business involving both sector and funding experts and the formulation of a plan to maximize the business' value.

For more information on Reorganization services please contact Ian Colebourne, CIS Managing Partner for CFS, via tel: +7 (495) 787 0600, fax: +7 (495) 787 0601.

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