Many financial services businesses are seeing strong growth on the back of very positive corporate earnings and low interest rates; however, many are becoming vulnerable to increasingly aggressive market regulation.
This has led to record-breaking fines imposed on even the largest organisations for previous misdemeanours, which has impacted their profitability.
In addition, since the financial 'crash' of 2008, many financial lending institutions have taken the opportunity to repair balance sheets; however, it is clear that some sections of their portfolios remain exposed and require restructuring and intense management time to get them back on an even keel.
Debts and capital repayments still require careful management and while it is true that many lenders would understandably like to ‘shake the tree’, regulatory constraints have complicated matters and hence more sophisticated solutions and turnaround options are required.
One of the most difficult decisions many lenders face will be whether to call in debts on a particular client and the ability to secure a satisfactory return for their business.
Our experts have a strong track record in implementing business performance improvement programmes, unlocking value and protecting the value of assets. Of course, timing is everything and effective turnaround plans depend almost entirely upon the moment in the cycle at which a distressed business is brought to our attention. We typically carry out a diagnostic business review and prepare a wide variety of proposals to ensure both the bank and its client have some sensible options to consider.
A refinancing option may help banks secure an optimised exit and similarly lenders frequently acknowledge the benefits of our creating an accelerated merger and acquisition prospectus so that suitors interested in bolt-on volume will be attracted to the asset. Our multidisciplinary teams collaborate with the bank and the business to ensure the most satisfactory outcome for both sides, reducing the lender’s exposure in line with their strategy.
With litigation a fact of life for many financial services institutions, we have supported a number of businesses to make their case against, or in defence of, a case. Using technology-driven data analysis tools and expert forensic consulting services, we assist banks and financial institutions in their public disclosure obligations, reviewing relevant documentation and delivering a proportional response.