Corporate Finance & Restructuring
Corporate Finance & Restructuring

Corporate Finance & Restructuring

Oliver Wyman provides an array of capabilities to support investment decision making, backed by deep expertise across diverse industry sectors. Our clients include private equity funds, hedge funds, sovereign wealth funds, investment banks, commercial banks, arrangers, strategic investors, and insurers.

  • Mergers and Acquisitions

    Oliver Wyman has created value in hundreds of M&A transactions across a range of industries. Our services include conducting industry and market scans; designing acquisition and divestiture strategies; developing robust, analytically driven due diligence; and assisting with transaction negotiations. Oliver Wyman focuses on assessing future transaction market/competitive potential, value chain drivers, business designs, and management; finding and profiling potential partners/buyers; devising optimal transaction structures; and facilitating the decision-making process.

    RECENT PROJECT EXAMPLES INCLUDE:

    • Developed aircraft-related investment theses and market assessments
    • Performed pre-merger due diligence and planning for aviation-sector companies
    • Conducted an analysis of aerospace markets to identify market entry opportunities
    • Provided due diligence, acquisitions, and exit support for manufacturing packaging companies
    • Identified targets in automotive testing equipment
    • Facilitated a synergy valuation assessment, working collaboratively with both the acquiring and target oil and gas companies
    • Managed the integration of two multibillion acquisitions for a global container port development and operating company
  • Structured Finance

    Oliver Wyman has participated in the valuation, structuring, and execution of many large securitization, reinsurance, and other structured finance transactions on both the buy and sell side. Oliver Wyman's support includes asset valuation and analysis of asset-backed securities; structuring and development of securities, including risk assessment at various levels; and provision of risk assessment analysis to underwriters as part of the due diligence process.

    RECENT PROJECT EXAMPLES INCLUDE:

    • Conducted valuations for rail rolling stock portfolios in the US, Europe, and Australia for financial institutions and rail equipment lessors
    • Developed mark-to-market value ranges for various aircraft types and led lease renegotiation efforts for several airlines
    • Developed negotiation roadmaps, providing insights into stakeholder motivation and likely responses to structured finance transactions
    • Provided financial restructuring support to investment banking teams, based on our knowledge of the company, industry, and assumptions underlying the valuation and pro forma projections
    • Selected distressed automotive companies as a basis for debt investment opportunities
    • Conducted operational and strategic due diligence in support of debtor-in-possession financing
  • Project Finance

    Oliver Wyman has a long track record of helping investors value, intermediate, and place major infrastructure and other business development projects. Across industries such as transportation, communication, and energy, Oliver Wyman has developed market demand forecasting for large infrastructure projects; quantified risk and priced, structured, and negotiated public-private development and investment options; and assessed alternative bid or transaction structures from market and financing perspectives.

    RECENT PROJECT EXAMPLES INCLUDE:

    • For mining companies seeking to increase export volumes, significantly reduced the capital expenditures required to expand rail and bulk port terminal capacity versus the transport provider's plan and helped negotiate new ownership structures and tariff rates
    • Developed an investment-grade forecast of future demand to support the expansion of the Panama Canal
    • Helped to form a project-based joint venture with a Middle Eastern private equity firm by leveraging our existing relationships
    • Developed the concession framework and financial model for new transit systems in Colombia
    • Conducted detailed synergy evaluations of several regional energy utility acquisitions for integration into a unique parent "platform"
    • Reviewed portions of a client's portfolio of unregulated businesses to determine targeted future roles and contributions
  • Restructuring

    Backed by its years of experience, Oliver Wyman acts as a trusted adviser to companies and investors as they take on the challenges of strategic, operational and financial restructuring. In the process, we place a particularly high priority on developing sustainable restructuring concepts that address both the market and 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.

    Oliver Wyman's contribution to restructuring projects

    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 for a company, 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 building upon 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 not only formal reviews but create real value for the company going forward.

    DEVELOPMENT OF RESTRUCTURING CONCEPTS

    In devising its sustainably successful restructuring approaches to a client situation, Oliver Wyman draws on its deep base of knowledge about market trends and specific success factors, its far-reaching expertise about operational excellence methodologies as well as its solid grasp of the needs and options of various financial sponsors (i.e., equity/borrowed capital). We take an integrated approach in this work. Our restructuring concepts are based 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 here 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 has a broad base of knowledge about industries and methodologies that it uses to help carry out restructuring projects in a quantitatively-based and methodical manner. This includes:

    • 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 the key to its success. Another vital step is to keep all stakeholders up to date about the status of implementation and to transparently report potential problems. This 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 of the implementation and the achievement of planned improvements—using a web-based program-management tool if necessary.
    • 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.
    • Ongoing liquidity management (including rolling liquidity projections, liquidity-bolstering steps and potential problems).
    • Support of communications activities about the restructuring program within the company and to external stakeholders.
  • Post-merger integration

    Oliver Wyman has developed a holistic approach to ensure companies capture the full value of transactions. This approach includes effective alignment and culture change, improving operations management and performance, customer retention, supplier/vendor integration, and intelligent rationalization – backed by detailed, step-by-step implementation support.

    Recent project examples include:

    • Planned the post-merger integration of a newly purchased portfolio company with another company previously purchased by a PE firm
    • "Leaned out" an entire A&D manufacturing process, conducted a performance improvement program, and reorganized supply chain processes
    • Implemented a value sourcing program for a large electronics firm
    • Created a downstream service growth program for a plastics machinery company
    • Ran the program management office, restructured US operations, and developed synergy targets for a US-based auto supplier of machinery acquired by a European player
    • Organized and executed the post-transaction integration planning effort and supported the functional integration teams of a combination of equally-sized utilities