The automotive sector, from retail showrooms to original equipment manufacturers and their considerable supply chain, has faced major challenges with both business and private demand for new vehicles waning. Many businesses in this sector have adopted a number of measures to combat challenging financial conditions including shortened working weeks and squeezing the margins of other companies within their own supply chain. Although intervention has been welcome, such measures are short term in nature and have failed to address the fundamental issues within the sector.
Our understanding of the unique value locked within the automotive sector allows us to implement restructuring strategies that can, where possible, free up cash, improve performance and release assets before problems become insurmountable.
We take a holistic approach to working within this sector and draw upon a complete toolkit of expertise to enhance the outcome of our clients. Our restructuring experts work alongside a range of operational experts within the automotive sector, who have previously occupied senior positions within the sector.
When instructed to work alongside a distressed business, we will work very closely with the current management team, or, if appropriate, the relevant investor in order to assess the situation, and produce a number of viable options to get the business back on track.
Typically our priority is to stabilise short-term cash flow and then produce a coherent restructuring and turnaround solution which addresses the long-term needs of the business, and puts the business back on the road to not only financial recovery, but also growth.
Businesses within the automotive sector often have to call upon their credit insurers during troubled times and our relationships with underwriters, brokers and claims professionals in this market is second to none, ensuring they obtain the maximum value owed under any given policy.
By their very nature, motor trade and automotive companies may have limited assets other than their premises, with vehicles, machinery and equipment very often leased by finance companies. Our financial consulting services include strategic planning and valuation advice which can help realise the value of any property assets to enable ongoing business success.
The words ‘product recall’ are many manufacturers’ worst nightmare, and such recalls are becoming more common as society becomes more litigious. Recalls can severely affect the financial performance of the business and, therefore, require a coherent strategy to minimise the impact on brand equity. We work with companies and their media advisers to ensure everyone who needs to be is fully briefed and able to convey approved messages to the press.
Investigation and Intelligence
The automotive sector is incredibly competitive and research is proving a key way of differentiating a manufacturer’s offerings. Previously, we have been instructed to assist manufacturers in suspected cases of ‘industrial espionage’ – where vital data has been leaked to a competitor. In these instances we have successfully traced the sources of leaks and made recommendations to prevent such incidents in future. This skill is supplemented by e-discovery expertise, which is playing an increasing role in instances of fraud.
Our advice includes:
- Restructuring and business development strategies
- Outsourcing analysis
- Strategic M&A review and options
- Property and asset valuations
- OEM negotiation
- Lender and creditor liaison
- Purchaser and investor introductions
- Corporate simplification
- Performance enhancement
- Data and intelligence leakage and tracing