Strategic guidance for lenders when client financial stress is high
With fast-changing market conditions and macroeconomic influences, you may find some of your clients are under financial stress and loan recovery is uncertain. Your clients may require assistance through restructuring and turnaround services, expert guidance to navigate urgent situations, and support in restructuring efforts or to maximize loan recoveries.
BDO's Business Restructuring & Turnaround Services (BR&TS) group provides services to all types of lenders, including major Canadian financial institutions, credit unions, alternative lenders, and private lenders. We work collaboratively with your client's management team to understand their business model and issues causing financial difficulty, assess available options to turn around financial performance, and develop robust restructuring plans.
If you have uncertainty surrounding the strength of your lending or security position, our team can perform an independent business review. We assist in gathering and analyzing the information required to help you make informed decisions. If an exit of your credit facility is ultimately needed, our team of Licensed Insolvency Trustees across the country can assist in planning and facilitating an exit to maximize recovery through a receivership, bankruptcy, or business windup scenario.
Triggers signaling when to call a BDO advisor
The most important decision management may make in times of financial stress is determining when to seek professional advice. It may be time to call a BDO BR&TS advisor to help assess options if your client is experiencing some of the following:
- Year-over-year financial losses
- Aging payables, source deduction, GST or HST arrears
- Breach of financial covenant or violation of loan agreement
- Transfer of your account to a lender's special loans group
- Request by a lender to negotiate a forbearance agreement
- Facing a significant lawsuit
- Supply chain issues causing disruption to operations
- Loss of a significant customer or supplier
- Concerns regarding ability to continue operations
- Significant accounting adjustments or other material impacts on margin calculations
How we can help
Our suite of services focused on lenders
Viability assessments
- Determine causes of financial stress
- Financial forecasting and budgeting
- Simple/complex financial modeling
- Assess strength of management and likelihood of turnaround
Options analysis
- Review and evaluate capital structure
- Assess restructuring, enforcement or exit strategies
- Identify potential sources of liquidity
- Scenario analysis modeling
- Assess likelihood of loan recovery and lender security position
Monitoring services
- Develop restructuring monitoring procedures
- Monitor management's performance executing restructuring plan
- Timely reporting to lenders
Liquidation services
- Sale of assets or underperforming divisions
- Wind down underperforming companies, which may involve formal bankruptcy proceedings
- Court appointed and private receiverships
Turning your business around starts with unlocking value
Our Strategy, Value Creation & Analytics service can help.
Featured insights and offerings for Lender Focused Restructuring
Resources to support your business
Recalibrating your business for the new economic reality
Pre-during-and post-pandemic financial outlooks are very different. Many companies that enjoyed high profits and a booming business throughout the pandemic are seeing a drastic shift, and this has implications both for their business models and the private equity firms who have large investments with them.
How companies can better manage their cash flow
How businesses can mitigate inflation risks
Inflation is on the rise and your business should be exploring options to mitigate the risks of rising inflation. While there is no easy answer, there are strategic initiatives you should consider to help strengthen and streamline your operations and protect your business.
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