hp restructuring

Restructuring Advisory

Persistent underperformance of a business may lead to financial distress that will affect core business operations.

In these situations, Heard Phillips can conduct an independent review of the business to diagnose the cause of underperformance, then design and implement strategies to stabilise the business, providing a platform and opportunity to return the business to profitability and cash flow strength.

Business Improvement

For businesses not meeting their financial goals, we are able to identify the key operational and financial drivers supporting profitability to enable us to design and implement strategies that will provide a pathway to business success.

One of the fundamental components of business success is the prudent management of cash. Having investigated the collapse of many corporate failures, the senior staff members at Heard Phillips are well equipped to advise on strategies to deliver improved cash management.

Many business owners are proud of their sales growth but are at a loss to understand why the cash flow of the business remains tight. By working with us, we can identify where the cash is 'locked up' in a business, prepare meaningful cash flow budgets and improve management's understanding of their business and its cash needs.

Members' Voluntary Liquidation (Solvent)

A members' voluntary liquidation is the process whereby a company that is no longer operating can transfer its remaining assets to its shareholders in a tax effective manner.

With the advent of the income tax consolidation legislation, there is often no longer the need for companies to maintain complex corporate structures, simply to preserve a pre-existing tax benefit.

These dormant or redundant entities can continue to cost the parent company time and money to retain and a members' voluntary liquidation will enable the redundant corporate structure to be streamlined.

Independent Business Review

Heard Phillips undertakes independent reviews of businesses on behalf of financiers, directors, and other stakeholders as follows:

  • Operational Reviews
    Conducted when a lender seeks additional comfort about an existing customer, typically, before extending existing facilities or when there are doubts about the capabilities of management.

  • Pre-Lending Reviews
    These reviews are usually conducted only after finance approval has been given on an in-principle basis, often with a very specific scope. A common limited scope assignment is the assessment of forecasts and the assumptions that underpin them. Other typical assignments include the review of product and process costing, and assessment of financial reporting systems.

  • Monitoring Reviews
    Ongoing monitoring is a key aspect of many workouts, with periodic investigation of the borrower to ensure that they remain able to fulfil their commitments.