Restructurings & reorganizations

We provide hands-on, comprehensive advice and increasingly, execute corporate and financial restructurings for clients operations, including:

  • “orphaned” subsidiaries of large energy and industrial corporations
  • privately held and entrepreneurs owned companies
  • portfolio companies of Private Equity groups
  • significant real estate corporations / funds / lenders
  • workout units of major commercial banks

Whilst in our experience, every restructuring assignment is different, our work will most often encompass some or all of the following:

Immediate Cash-Flow Remedial Action
Under performing companies do not fail because of P&L losses, but because they run out of cash. We initially focus on immediate cash flow stabilization measures, ensuring the necessary breathing time allowing for the definition and implementation of more comprehensive corporate overhaul processes.

Corporate overhaul
Some companies active in rapidly changing, or even declining addressable markets remain perfectly viable, provided they adapt to their new industry environment. We work on returning such companies to profitability and cash flow stability, with a view to ensuring their long-term prosperity. Having articulated the core strengths of such companies, we define and implement overhaul programs, which can include; cost optimisation, changes in organizational structure, re-focusing or carve out of business units, or other necessary measures.

Capital Employed Management
TriStone Partners has extensive experience in advising companies on the capital structure appropriate with their circumstances and objectives, and then implementing actions to optimise balance sheet structures and / or return on capital patterns. Our close links to various capital providers, including equity investors, mezzanine, asset backed finance or other bank instruments allow us to promptly execute on our recommendations.

In-Depth Financial Analysis
In each case, we aim at identifying the core operating strengths of the company. We conduct detailed financial and business due diligence in connection with restructurings, assess immediate and longer-term liquidity needs and debt capacity, evaluate, and usually re-work business plans with management, and develop long-term financial projections, which support negotiations with the company’s different stakeholders.

Working Capital Optimization
Purchasing, collection period, inventory turnover, contingency stock, payment terms are just a few aspects of working capital management and planning which directly impact a company’s cash flow. TriStone advises on, and implements, improved working capital management methods, enabling companies to unlock cash surpluses.

Transaction Execution
Reorganizations will often imply some M&A, or capital transactions, either for the entire company, or the tactical disposal of selected assets, including real estate, raising new equity and restructuring liabilities, or again assisting on debt restructuring negotiations or strategic divestiture transactions.