Restructuring-hero

When It’s Time for a Restructuring

Restructuring is hard. Leaders who know how best to approach it can help their organizations emerge as strong as possible from a restructuring. BCG and BCG TURN—our special transformation, turnaround, and restructuring unit—assist clients in managing this daunting challenge.

Companies that fail to quell a profit crisis through a business turnaround risk seeing their problems escalate into a liquidity crisis. If they continue to burn through cash and fail to surmount their capital and balance sheet challenges, they could also face insolvency—and possibly bankruptcy.

For companies struggling to move from insolvency to revitalization, the stakes are incredibly high. After all, restructuring situations involve failing or close-to-failing companies, and the solutions center on ensuring their survival. Our restructuring consulting teams work shoulder to shoulder with businesses to help them navigate this complex process.

How BCG TURN’s Restructuring Consultants Help Clients Renew Competitiveness

Our corporate restructuring services help companies focus on managing their liquidity and capital. The goal? To strengthen their balance sheets, boost cash flows, and transition out of survival mode.

Our approach combines the practical expertise of BCG TURN experts, who are well versed in every aspect of the restructuring process, with BCG’s equally deep expertise across a wide range of industries and functions. This combination puts us in a unique position to push beyond restructuring and help our clients transform.

Our seasoned advisors understand the risks facing stressed and distressed companies—including disclosure risk, legal risks in insolvency support, open invoices from filing for insolvency, reputational risks, and de facto directorship. To help clients mitigate these risks, our consultants combine hands-on expertise with advisory skills to lead clients through the restructuring process.

Our Holistic Restructuring Services

Our corporate restructuring services cover all aspects of a liquidity crisis—not just for companies experiencing corporate distress but also for healthy enterprises indirectly affected by distress.

BCG TURN

BCG TURN—a special unit within BCG—helps executives deliver rapid, visible, and sustainable step-change improvement in business performance; strengthen their organizations to win in the future; and turn their companies’ upside potential into radical performance gains. BCG TURN’s transformation experts have proven track records and are invested in clients’ sustainable success.

Learn more about BCG TURN

BCG’s Restructuring Work with Clients

BCG’s restructuring consulting services have supported numerous business and operational restructuring programs across a wide variety of industries. Examples include:

Designing and Implementing a Business Restructuring Program

A private equity firm asked BCG to help craft a restructuring program for a struggling company in its portfolio in order to secure the financing essential for a smooth exit. We analyzed the portfolio company’s performance on multiple criteria, pinpointed the root causes behind performance shortfalls, and jointly defined a corporate restructuring strategy with the enterprise’s management team. We also established a program management office to drive implementation and prepared refinancing negotiations with lenders. Our disciplined approach paid off: the plan supported an EBITDA uplift and provided sufficient liquidity for the portfolio company to meet financing obligations, ultimately leading to a successful exit for its private equity investors.

Restructuring and Refinancing a Family Business

A family-owned manufacturing company needed financing to improve its EBIT margins. BCG analyzed the company’s production sites and designed a plan for optimizing its production footprint. The plan called for closing several sites and establishing lean productivity practices in the remaining sites. We also identified ideas for reducing nonpersonnel costs and implemented a firm-wide cash office to manage the development of liquidity measures, including a rolling 13-week liquidity plan. As a result of our work, the company was able to prioritize initiatives that could generate $97 million, which was essential for achieving its EBIT-margin target. It also secured short-term bridge financing as well as $324 million in long-term financing.

 

Meet Our Restructuring Consultants

Our restructuring consultants have a long track record of partnering closely with clients to help them navigate the complex restructuring process. Meet our leadership team.

Learn More About Restructuring

protected by reCaptcha

Subscribe to our Transformation eAlert.

Business Transformation

SUBSCRIBE