Restructuring isn’t a single event. It’s a series of carefully sequenced phases. In this blog, we’ll shine a light on the process and how Verita’s team of experts help legal and financial stakeholders get it right.
In a few broad strokes, here’s how it typically unfolds.
1. Assessment and analysis
This is the diagnostic phase. Financial analysts dive into the books, operational consultants evaluate efficiency, and stakeholder interests are mapped out. The goal? Understand what’s not working and why.
Key activities may include:
- A financial health or operational audit,
- a strategic position assessment to evaluate market position,
- a stakeholder analysis, and
- a cause identification.
The output for this stage could be a diagnostic report of the findings. This report should define the issues at hand and identify key areas in need of intervention.
2. Planning
Next comes strategy. What needs to change? How fast? What’s the risk? It’s during this phase that legal, financial, and operational plans are built.
Key activities may include:
- Set objectives and SMART goals,
- agreement on the restructuring strategy,
- financial modelling, and
- a detailed plan to execute the chosen strategies.
The output for this stage can include a restructuring plan. This may outline chosen strategies, action steps, timelines, financial projections, risk assessment, and a communication plan.
3. Execution
This is the heavy lift. Staff are reassigned, facilities close, creditors are contacted, claims are processed, and court filings are managed.
This phase is where Verita’s expertise shines. We handle notices, run call centers, execute ballots, disbursements, and everything in between.
Key activities can include:
- Secure approvals and funding,
- implementation of the specific steps outlined in the plan,
- project management, and
- engagement with key stakeholders.
The output for this stage should show that the necessary restructuring actions have been executed. There should be concrete, organizational changes.
[insert SME quote, such as: “The implementation phase is where restructurings live or die,” says [Insert SME Name], [Title] at Verita. “That’s why our clients count on us for accuracy, speed, and full transparency.”]
4. Evaluation & Monitoring
Once changes are in place, performance is measured against goals. In many cases, this phase also includes course correction.
Key activities can include:
- Performance measurement through KPIs,
- variance analysis and impact assessments,
- adaptive management to make necessary adjustments, and
- strategic review.
The output for this stage may include a performance evaluation report that compares results to objectives. It may contain a summary of lessons learned or updated financial outlooks.
