If the business is not running as it is expected, it may be the time to think for a financial restructuring of your company. With the covid pandemic and the global economic fall down, many companies are under immense pressure and many of them are planning to go for a wind up.
In current year 2022, if you are planning for a financial restructuring, then here are some guidelines for you.
In 2022, there is easy access to low-cost capital, high valuation, high demand of consumers are good signs and may keep the percentage of restructuring quite low. But still the businesses are facing challenges because of rising material costs, disruption in supply, labour shortages and the constant threat of COVID-19. So, you need to look for a professional financial restructuring advisory who will guide you to overcome your situation. Before you opt for any financial restructuring services, let us take a look at the current situation of business market in Singapore.
The travel, retail businesses are still facing a tough situation due to pandemic. The property development and construction market are also having a tough time and large number of insolvency process can be observed in this market also. There is a rise in overall cost of raw materials observed and thus giving a tough time to the business houses with the current pandemic situation.
With COVID-19, the global business market is being affected. The businesses need to restructure, refresh and accelerate proper plan so as to ensure the survival in this situation. We can take the examples of Bonds which is a very popular financial instrument in Southeast Asia. But the recent media coverage in Singapore shows a deterioration in bond quality and a potentially immense wave of defaults. This is alarming.
Financial Restructuring Advisory – Reasons for Financial Restructuring:
There can be several reasons for financial restructuring both financial and non-financial. A company can be in financial difficulty under the following circumstances:
- It is unable to pay its debts
- It breaches covenants
In this kind of situation, the skate holder’s try to protect their position and look for a proper financial restructuring advisory to avail the financial restructuring services which will include the action plan to quickly preserve values, strategic financial advices for fast decisions, assessing short-term liquidity requirements etc.
The financial restructuring services should help you to answer the following questions:
- Do you have enough funding to keep your business running while a new action plan is developed?
- Do you know where was I wrong and how to fix it?
- What capita/debt structure should I follow to get the best prospect of success?
- What role will be played by the alternative capital/debt providers?
- How do I ensure that the business is supported through its recovery?
So, if your company is really looking for financial restructuring, go to a professional financial restructuring advisory and under their guidance revive the financial structure of your company.