Exit Solutions

When an organisation becomes aware that a subsidiary, division, branch or brand is under-performing, BRS can assist in optimising returns achieved in a disposal or carve out.

We help identify the key issues and evaluate the available options. We assist in implementing the best exit or simplification approach (e.g. sell, fix & sell or wind down) identifying and helping manage the risks inherent in the process.

A critical objective is an increase in shareholder value by selling, restructuring, closing or winding down the under-performing business or subsidiary. Our proven methodology, global capabilities and swift service working under pressure of time are our key differentiators.

Potential challenges you as a business may be faced with:

  • You have divisions or subsidiaries whose operations are inconsistent with Group strategy (non-core)
  • You are looking to divest/sell-off some non-core operations
  • You are concerned about a business that is absorbing too much capital or the funding of a closure programme appears excessive
  • A sudden fall in demand for a product or service and /or pressure on margins in a specific division
  • Over leveraged balance sheet
  • Failure to meet growth targets in current market and economic conditions
  • Holding costs are incurred each year in respect of dormant or redundant entities
  • Recent mergers and acquisitions activity has led to excessive levels and unsustainable levels of debt
  • Increased number of dormant companies as a result of recent merger and acquisition activity
  • Corporate structure needs to be simplified to release capital tied up in the business

How we can support you:

  • Maximise value by working with management and exploring options to deliver a share, business or asset sale
  • Manage stakeholders to provide a platform that will allow implementation of the process
  • Avoid the stigma and loss of value of an unplanned insolvency
  • By releasing capital to reinvest in the business
  • Help eliminate recurring and wasted corporate governance expenditure. The costs are typically recovered within 12 – 15 months where many companies are being eliminated simultaneously

Our tailored services:

Contingency planning

For business stakeholders in respect of businesses experiencing pressure on profitability, cash flow and/or the balance sheet and want to understand their options of how best to maximise their value. Our team are able to work quickly to evaluate the situation, identify the best options and possible outcomes of each option.

Optimised exits

If possible we avoid the “fire-sale” scenario. “Fix & sell” is a preferred exit route whereby we combine our turnaround and disposal expertise to increase the value realisation. We may often consider expanding the business by merger or acquisition if this can add to the eventual resale value. However, if the optimal solution is vendor-financed sale then it is best to persue this option early.

Accelerated M&A

We maximise value through the sale of shares, business or assets in a tight timeframe using our accelerated disposal methodology that delivers substantial value over and above what is usually recovered in an unplanned insolvency situation. We work with stakeholders in the early stages (before options become limited) to provide a business sale which is properly orchestrated, delivered quickly, and managed according to the different agendas of the various stakeholders (equity, debt, management, customers, suppliers, employees etc). Timescales vary but can often be a matter of weeks rather than months - and in the most extreme situations can be a matter of days.

Corporate Simplification

We assist organisations that need to reduce operating costs to achieve a simplified more transparent corporate structure by dissolving inactive companies that have fulfilled their economic purpose. BRS can provide advice on the different methods of simplification, the associated risks to the directors and the Group, how best to plan this type of project and how to avoid common pitfalls.

Managed wind-downs

Over a planned period, we would assist in gradually running-down the business, completing orders, realising assets and maximising receivables.

Members Voluntary Liquidation

Where a business has cash, assets and limited liabilities but no future purpose, management and the shareholders may decide that MVL may be the most cost effective solution for exit. We are able to work with stakeholders in the early stages to provide an approach which is properly orchestrated, delivered quickly and managed according to the different agendas of the various stakeholder sto ensure the ultimate recovery of value.