Turnaround & Restructuring

It is relatively easy to fall off the path to growth. It’s far more difficult to get back on. KPMG’s global network of Turnaround and Restructuring professionals can help you do it. Our teams of creative and dedicated problem solvers are single-mindedly focused on quickly and effectively putting you back on the path to growth. Leveraging our global network’s full range of capabilities and deep sectoral experience, our professionals create unique solutions to your problems, supported by some of the industry’s most innovative tools, enabling technologies and proven methodologies.

KPMG is the one global network that can take you from ‘value preservation’ mode to value creation and growth, supporting you every step of the way from the ideas stage to implementation. Our focus is on helping you solve your problems, so you can get your company back on the path to growth.

Value creation: Turnaround

Quickly stabilize your cash and liquidity positions and get a realistic view of your current options. Identify opportunities for strategic, operational, organizational and financial change — and then act on them to deliver real results.

Value stabilization: Restructuring

Focus on the right questions as you navigate your corporate restructuring. We help you to understand your financial options, advise on your existing or new stakeholder communications. We help you stay ahead of the issues and make effective decisions with confidence.

Value preservation: Insolvency

Identify the path of value and return to health on a solid financial footing. We can help you assess the impact and risks of various options, identify the right filing jurisdiction if necessary, and prepare a detailed insolvency plan that can improve stakeholder positions.

What we do

When your company’s future is at stake, you can’t rely on generic insights and approaches. What you need are tailored, sector-specific solutions that recognize the unique context of your challenges. At KPMG in Romania, our people bring deep industry and sectoral experience – creating the right mix of capabilities and specialities so that your unique restructuring journey achieves its goals.

These services are suitable for companies seeking to overcome operational or financial challenges and improve performance.

KPMG's team of specialists helps companies by identifying opportunities for strategic, operational, organizational and financial change and acting on them to achieve real results.

To achieve these objectives, KPMG assists in assessing the liquidity position and creating a stakeholder management plan which facilitates a focus on the key questions through the critical stages of change management.

Option identification: What are the options available for providing value pockets?
Stabilization: How might the business be stabilized based on its assessed financial position?.
Turnaround strategy: What are the financial paybacks of the various options (e.g. downsizing, downscoping, repositioning)?
Execution: How can the turnaround plan be executed?
Value realization: What risks and costs are associated with each path, including contingency plans?

Headline assessment of the company’s financial position in terms of assets and liabilities, performance and/or cash flows in an outline and short time frame in order to determine key risks and vulnerabilities. This service is designed to give a snapshot of key financial metrics and identify areas that may need deeper analysis or immediate attention.

It is a quick, "scan-type" financial analysis that provides an overview of a company's financial health. The goal is to identify signs of financial stress early on and to inform intervention decisions.

Financial Quick Scan is the first step in a turnaround process. Based on the results, a decision is made on whether:

a one-off intervention (operational optimization) is needed,
a financial restructuring plan is required, or
Even if controlled insolvency measures are necessary.

These services are mainly addressed to one or more stakeholders of a company encountering financial challenges.

The objective of an Independent Business Review (IBR) is to provide stakeholders with assistance and independent advice on the options available for restructuring the company's financial liabilities and/or wider capital structure and thus to bring them into line with the underlying performance of the business.

The most important phases of an IBR are:

Initial appraisal analysis (understanding the business and its drivers of performance);
Review of the current financial position;
Business plan (commercial and strategy) review;
Providing a forecast of the financial position of the company;
Providing an assessment of options available to stakeholders considering the market conditions.

This is an out-of-court solution applicable to a business experiencing financial difficulties and can be accessed by the stakeholders or by the company itself.

KPMG helps improve the financing structure of a company, based on thorough understanding of the complex landscape of borrowers, lenders and shareholders, careful management of stakeholder communications, an assessment of the short-term liquidity requirements and the formulation of the actions that are likely to preserve value quickly and address potential risks to stability.

KPMG's team of specialists helps the company focus on the key questions throughout the process of achieving sustainable financial change.

Appraisal and stabilization: Has the company enough liquidity to keep operating?
Options assessment: What has gone wrong and how should it be fixed?
Intra-stakeholder negotiations: What must be done to keep everyone engaged in negotiations?
Development of options: What sustainable capital structure offers the best prospect of success?
Implementation: How should all stakeholder positions be reconciled in order to implement the new capital structure?
Ongoing monitoring: How should it be ensured that the business is supported through its recovery?

These services support companies in distress, which encounter an urgent need for liquidity and/or are contemplating the disposal of certain underperforming parts of the business or assets. The service can also be contracted in relation to companies in insolvency, when M&As are one of the measures included in the plan for reorganization or applied to dispose of a business line.

The services which can be provided by KPMG as part of Distressed M&As services include:

Identifying and assessing distressed sale options;
Conducting the distressed sale process: preparation of the process and marketing documentation, identifying investors, managing investors’ participating in the disposal process, managing the successful closing of the disposal;
Buy-side advisory during a Distressed M&A process.

These services are addressed to credit institutions, credit servicers, purchasers of non-performing exposures, and other interested parties. The range of services offered by KPMG in relation to non-performing exposures include:

Sell-side advisory for the disposal of a non-performing exposure or portfolio;
Buy-side advisory related to a non-performing exposure or portfolio;
Pre-sale portfolio readiness assessment (including availability and quality of data), data remediation;
Providing advice on transaction structuring;
Data room preparation and administration;
Providing an independent opinion on the most appropriate recovery strategies for specific non-performing exposures;
Providing an opinion on the fair value of specific non-performing exposures;
In relation to early collection and workout processes: design and implementation, analysis, improvement, measurement (KPIs).

Preventive Concordat

A Preventive Concordat is a procedure for companies in difficulty, i.e. companies encountering distress resulting from whatever cause and giving rise to a real and serious threat to the company’s future ability to pay its debts as they become due, if appropriate measures are not taken.

The Concordat Procedure sets out the procedural framework allowing for a stay of enforcement procedures and a restructuring of the company in difficulty based on a restructuring plan voted for by the affected creditors and homologated (confirmed) by a syndic judge.

In this procedure KPMG can help by providing Concordat Administrator services, which include:

Issuing the report on the state of difficulty of the company;
Writing or assisting the company in writing the restructuring plan;
Communicating the restructuring plan to the affected creditors and the homologated restructuring plan to all creditors;
Approving the interim financing arrangements, contracted by the debtor prior to homologation;
Organizing one or several negotiation sessions (individual or collective) with the creditors;
Issuing the quarterly supervisory reports based on the information made available by the company;
Assisting the company in implementing the restructuring plan, if necessary.

Restructuring Agreement

A Restructuring Agreement is a procedure for companies in difficulty, i.e. companies encountering distress resulting from whatever cause and giving rise to a real and serious threat to the company’s future ability to pay its debts as they become due, if appropriate measures are not taken.

Under Restructuring Agreement proceedings, a debtor in a state of difficulty proposes a restructuring agreement to the affected creditors (i.e. those creditors which are directly affected by the restructuring measures proposed in the restructuring agreement).

KPMG can help companies which are contemplating the use of a Restructuring Agreement by providing Restructuring Administrator services, which include:

Assessing the state of difficulty and issuing a report on the state of difficulty;
Writing or assisting the company in writing the restructuring agreement;
Communicating the proposed restructuring agreement to the affected creditors;
Negotiating or assisting the company in negotiating the restructuring agreement with the affected creditors;
Organizing the voting process for the restructuring agreement;
Monitoring the implementation of the restructuring agreement based on the information sent by the company in a timely manner;
Assisting the company in implementation of the restructuring agreement

Insolvency proceedings are suitable for companies without sufficient liquidity for the payment of claims which are certain, determinable and due. Depending on the possibilities for reorganization of the company, the procedure may unfold into judicial reorganization or bankruptcy (liquidation).

KPMG can support companies undergoing insolvency procedures by undertaking the role of the judicial administrator or judicial liquidator in the procedure.

The services provided by KPMG in this role will include:

Analyzing the statements of claims and publishing the tables of creditors;
Supervision of the company's activity and issuance of the relevant reports;
Preparing the plan for reorganization;
Assisting the company in implementing the plan;
Support in the sale of assets;
Reviewing annullable deeds and filing petitions before the appropriate court of law;
Organizing the meetings of the decision-making bodies under the procedure (Creditors Committee, Creditors Assembly);
Providing support in negotiation and coordination with stakeholders;
Acting as trustee for the bankruptcy estate;
Contracting with an authorized valuator to establish the valuation of the assets included in the insolvency/bankruptcy estate;

KPMG can also help in insolvency procedures without being appointed as judicial administrator/ judicial liquidator, by providing services such as:

Preparing the plan for reorganization at the request of the shareholders or creditors;
Issuing an expert opinion on the reorganization plan submitted by the parties entitled to under the law;
Providing to an interested third party (e.g. a potential purchaser of a claim) an opinion on the best recovery strategies under a specific insolvency procedure;

KPMG can help by providing liquidation-specific services.

When a company is liquidated other than under insolvency proceedings and the applicable legal provisions require that the liquidation is carried out by a liquidator, KPMG can help by providing liquidation-specific services:

conducting the stock taking and ensuring collection of receivables held by the company against third parties;
proposing the liquidation plan to the General Meeting of Shareholders;
ensuring the payment of debts to secured creditors, the state budget and to other creditors, etc.;
handling the company's financial issues and filing the documentation related to the liquidation in accordance with the legal provisions.

Our insights

Access fresh perspectives and actionable insights on global Deal Advisory trends and key issues impacting your business.

Helping you quickly create value and overcome operational or financial challenges

Helping you go beyond the numbers to understand value so you can make good decisions for your business.

M&As require decisive, swift action to seize opportunities. Whether raising capital, acquiring businesses, or selling your company, you need a trusted advisor with experience in delivering successful M&A deals.