OW Capability: Corporate Finance & Restructuring

Restructuring

Backed by years of experience, Oliver Wyman acts as a trusted advisor to companies and investors as they take on the challenges of strategic, operational, and financial restructuring.

We place a high priority on developing sustainable restructuring concepts that address both the market and the competitive environment as well as specific factors for success. Oliver Wyman acts as a coordinator for restructuring processes, as an objective expert and a neutral third party who provides quantitatively supported advice to address the interests of management, shareholders, lenders, and other stakeholders. With more than three decades of experience in strategic, operational, and financial restructuring, Oliver Wyman offers a complete management solution and "one-stop-shop" approach to turning around companies.

Independent Business Reviews (IBR)

When an outside-in assessment of a company in distress is required, Oliver Wyman can leverage its deep industry expertise and extensive restructuring experience to identify risks and opportunities, which are then used to assess business plan revenues, profits, and cash flows. Special attention is paid to the viability of the business design and the ability of the company to win against its competitors.

Using benchmarks and best practices from industry peers and our toolbox of methods to achieve operational excellence, we also give concrete recommendations on how to improve profitability and liquidity—often even beyond what was planned in the original business plan.

Hence, our IBRs are more than formal reviews; they create real value for the company.

Development of Restructuring Concepts

In devising sustainably successful restructuring approaches for clients, Oliver Wyman draws on our deep base of knowledge about market trends and specific success factors, our far-reaching expertise in operational excellence methodologies, and our solid grasp of the needs and options of various financial sponsors (i.e., equity/borrowed capital). We take an integrated approach in this work, and we base our restructuring concepts on four pillars:

  • Strategic repositioning: The focus is placed on core markets and potentially profitable business fields. Business operations that destroy value will be closed or divested.
  • Value-focused business model: Using our approach called value-driven business design, we optimize such business drivers as a company's customer, product, and technology portfolio, define core skills, and bring the organization into alignment with the strategy.
  • Operational excellence: The focus is placed on lean organizations and processes. In particular, this work is aimed at simplifying production networks and increasing efficiency and effectiveness by applying such methodologies as LEAN and Six Sigma. In addition, purchasing and the entire supply chain are optimized.
  • Financial restructuring: On the basis of the strategic repositioning work, the value-focused business model, and operational-excellence programs, we determine liquidity needs and the requirements for a sound capital structure through the use of integrated financial planning. This creates the foundation for a financing concept that optimally weighs the interests and decision-making freedom of all participating parties.

Methodological and Professional Assistance With Implementation

Oliver Wyman draws from a broad base of knowledge about industries and methodologies to help carry out restructuring projects in a quantitatively-based and methodical manner. Areas of expertise include:

  • Strategy & Growth
  • Sales Efficiency
  • R&D Productivity
  • Production Optimization
  • Lean Management
  • Procurement & Supply Chain
  • IT & Operations
  • Organization & Processes
  • Mergers & Acquisitions

Program Management and Communication

Careful monitoring of the project's implementation is key to its success. Also vital is keeping all stakeholders up to date on the status of implementation, transparently reporting potential problems. Effective communication enables barriers to implementation to be identified at an early stage and then removed. Oliver Wyman assists with the implementation of restructuring programs in a number of ways, including:

  • Monitoring the implementation and the achievement of planned improvements—using a web-based program-management tool if necessary
  • Delivering regular reports to management, owners, and financial stakeholders about the latest business performance (sales, earnings, liquidity) as well as the implementation status of the project, potential problems, and necessary responses
  • Performing ongoing liquidity management (including rolling liquidity projections, liquidity-bolstering steps, and potential problems)
  • Supporting communications activities about the restructuring program within the company and to external stakeholders

Restructuring Insights