As the Global economy emerges from the deep recession which started in 2008, construction should at the forefront of corporate earnings growth. However this is not a consistent picture and many international construction businesses remain overly exposed to markets such as China and Russia, where slowing growth has impacted profitability. What were seen as cast-iron speculative investment projects were cancelled overnight, or at best mothballed indefinitely.
Additionally previously ‘gold-plated’ contracts within the public sector are falling victim, as central government cut publicly funded projects as part of their austerity programmes.
Our geographical coverage and expertise means we have first-hand experience of advising all sizes of distressed construction businesses. This advice is broad-based, encompassing everything from strategic development opportunities and financial modelling of key development projects through to a full restructuring and turnaround exercise.
The temptation to do things the way they have always been done can be the undoing of a business. Following a comprehensive health check to identify areas of improvement, we are able to put forward suggestions for where processes can be streamlined and where costs can be reduced. Whether it means reviewing leases, changing payment terms and negotiating more competitive prices from suppliers, we have the expertise to maximise potential values.
Strategic Partnerships and M&A
Achieving economies of scale through mergers and acquisitions is a route we are actively exploring with a number of our construction clients, as they look to extend their share of the market and remain competitive. In addition we have a track record of working with clients to explore potential areas of growth and identify new sources of revenue.
Unfortunately, the construction sector is one of the most vulnerable to fraud and financial malpractice. Our specialist risk team have an enviable track record of working with businesses within this sector to minimise losses. Our technology, forensic and risk management teams are able to identify financial leakages, reduce the risk of fraud and implement risk management procedures to reduce on-site losses and theft of materials and machinery. On behalf of a variety of major construction companies, we have carried out data-driven analysis and investigations leading to the recovery of very high value stolen equipment, while helping avoid significant risks such as fraudulent stock management.