Independent Business ReviewMiten muodostaa kokonaisvaltainen näkemysliiketoiminnan lähtökohdista, tulevaisuudesta javaihtoehdoista kriittisissä tilanteissa?
Restructuring Services –webinaarisarja, osa 105.11.2020
2© 2020 Deloitte Oy, Group of Companies.
Sisällysluettelo
Tilaisuuden avaus ja johdanto aiheeseen 3
IBR in a Nutshell – The What, Why and How? 10
Nordean kommentti ja keskustelu 19
Kiitos ja tervetuloa uudelleen! 23
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Deloitte yhteistyökumppanina 2505
3© 2020 Deloitte Oy, Group of Companies.
Tilaisuuden avaus ja johdanto aiheeseen
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9:00 Tilaisuuden avaus
Hans Rosendahl, Deloitte
Partner, Strategy & Restructuring Services
9:15 IBR in a nutshell – The What, Why and How?
Stefan Sanne, Deloitte
Partner, Corporate Restructuring & Insolvency
9:45 Kommentti: Rahoittajan tarpeet ja päätöksenteko
Mikko Mörsäri, Nordea
Aluejohtaja, Etelä-Suomen yrityspankkialue
9:50 Keskustelu
10:00 Tilaisuuden päätös
Webinaarin agenda ja käytännön asioita
• Ole aktiivinen ja hyödynnä tilaisuus!
• Kysymykset voi laittaa myös viestinä (MS Teams)
• Suljethan mikrofonisi ellet halua puheenvuoroa
• Webinaarin kielet
• Alustukset suomeksi ja englanniksi
• Kysymykset Stefanille englanniksi
• Materiaalit jaetaan osallistujille webinaarin jälkeen
• Tulevat RS-webinaarit
• Osa 2: Chief Restructuring Officer (19.11.2020)
• Osa 3: Financial Restructuring (3.12.2020)
Agenda 5.11.2020 @ 9:00-10:00 Käytännön asioita
5© 2020 Deloitte Oy, Group of Companies.
Webinaarin alustajat
Professional Profile
Stefan Sanne is Restructuring Partner within Financial Advisory at Deloitte and is responsible for Corporate Restructuring. He has more than 20 years of extensive experience in the development and implementation of turnaround plans, performance improvement plans, restructuring opinions and controlling tools in numerous industries including automotive, retail, manufacturing, textiles and electronics. Additionally, he is an expert in the field of insolvency and was responsible for the recovery management in a standard mezzanine program.
Deloitte (Germany)Schwannstr. 6D-40476 DuesseldorfGermany
+49 211 8772 3685www.deloitte.de
Stefan Sanne
Partner, Corporate Restructuring & Insolvency
+49 178 877 2685
Duesseldorf, Germany
Professional Profile
Mikko Mörsäri is a Head of Market area Southern Finland at Nordea Business Banking. He has over 20 years of corporate banking experience. Nordea Business Banking serves large and medium sized corporate customers holistically and aims to be a trusted advisor to the owners and management of its customers.
Nordea (Finland)Mannerheimintie 700100 HelsinkiFinland
+358 (0)9 5300 7294www.nordea.fi
Mikko Mörsäri
Aluejohtaja, Etelä-Suomen yrityspankkialue
+358 (0)40 826 2100
Helsinki, Finland
Professional Profile
Hans Rosendahl is a Partner at Deloitte Finland focusing on Strategy & Restructuring Services. He has nearly 22 years’ experience in strategic advisory in Finland, Europe and the Middle East. His core capabilities include strategic planning & analysis, M&A organization design, performance improvement and business transformation programs. He has worked across multiple industries incl. healthcare, financial services, retail, media, technology and government.
Deloitte (Finland)Salmisaarenaukio 200180 HelsinkiFinland
+358 (0)20 755 500www.deloitte.fi
Hans Rosendahl
Partner, Strategy & Restructuring Services
+358 (0)40 552 7575
Helsinki, Finland
6© 2020 Deloitte Oy, Group of Companies.
We have witnessed several dramatic events in 2020 and the level of uncertainty remains high
The COVID-19-pandemic appears far from over The global GDP forecasts remain positive for 2021
The stock markets have recovered quickly but is it sustainable? There are numerous sources of uncertainty
4,249522
10,797344
0
3
6
9
12
2019-12 2020-02 2020-04 2020-06 2020-08 2020-10
Mill
ion
s
OECD S&P Global IMF EC
Sources: Deloitte analysis, OECD, Ministry of Finance, IMF, European Commission, European Center for Disease Prevention and Control, Nasdaq, News medias
*Note: OECD forecasts based on the Double Hit scenario (see OECD Economic Outlook June 2020 for more information).
-7.6%
2.8%
-3.8%
5.3%
-4.9%
5.4%
-3.9%
4.9%
20212020
0
2000
4000
6000
8000
10000
12000
14000
2.1.2020 2.3.2020 2.5.2020 2.7.2020 2.9.2020
Nasdaq Composite Index YTD
4.3M
10.8M
USAElections and role in global community BigTech
Valuations and anti-trust
concerns
BrexitProbability
and impacts of Hard Brexit Conflicts
Terrorims and armed conflict
close to Europe
Trade warsUS-China
US-EUEU-China
7© 2020 Deloitte Oy, Group of Companies.
Finland has coped relatively well with the impacts of COVID-19 but don’t celebrate just yet
The economic impacts have varied greatly by industry The economic sentiment in Finland has declined since July
The number of bankruptcies in Finland is artificially low The GDP outlook for 2021/2022 remain positive
91 90
82
50
70
90
110
Euro Zone
European Union
FinlandSevere• Restaurants• Hospitality• Aviation• Etc.
Mixed• Manufacturing• Construction• Services• Etc.
Limited• Technology• Grocery retail• E-commerce• Etc.
Finland weeklybankruptcies YTD
-4,5 -4,7 -4,5 -5,0 -5,0
2,6 2,7 3,2 3,03,9
1,72,4 1,9 2,0 1,7
-6
-4
-2
0
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4
20212020 2022
VM SP ETLA NORDEA PT
8© 2020 Deloitte Oy, Group of Companies.
Independent/Company Business Review 1.0 vs. 2.0
1.0 – TYPICAL APPROACH 2.0 – BROADER PERSPECTIVE
• Financial distress (risk)
• Focus also on underlying strategic/operational issues
• Independent perspective to support decision-making
CONTEXT & OBJECTIVE
• Understand path and reasons for current state
• Validate current position and key issues/problems
• Identify strategic options and propose solutions
TIME HORIZON
• Holistic approach: Finance, strategy & operations
• Opportunity analysis (e.g. EBITDA) from the bottom-up
• Outline a value creation plan
SCOPE OF ANALYSIS
• Tailored value creation plan
• Pragmatic and creative problem-solving
• Make it happen: CRO, finance, strategy, operations …
MENTALITY
• Financial distress
• Focus on financial restructuring solution
• Independent perspective to support decision-making
• Primary focus on historical performance
• Validate current position and key issues/problems
• Financial modelling
• Predominant focus on the financial perspective
• Opportunity analyses upon history and/or benchmarks
• Business plan review
• Possibly a necessary formality
• Structured approach (”audit”)
• Next steps: Financial restructuring & divestments
9© 2020 Deloitte Oy, Group of Companies.
Independent/Company Business Review 1.0 vs. 2.0
HISTORYWhat has the company’s ”normal” performance
been historically?
CURRENTWhat is the company’s
current position e.g. strengths and weaknesses?
FUTUREWhat are the company’s
options and potential (probable) performance?
TIME HORIZON
FINANCIAL PERSPECTIVE
STRATEGIC PERSPECTIVE
OPERATIONAL PERSPECTIVE
SCOPE OF ANALYSIS
IBR/CBR1.0
IBR/CBR2.0
INDICATIVE
10© 2020 Deloitte Oy, Group of Companies.
IBR in a Nutshell – The What, Why and How?
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Introduction to IBRStefan Sanne, Partner, Restructuring & Insolvency05.11.2020
12© 2020 Deloitte Oy, Group of Companies.
Independent Business Review / Company Business ReviewWe undertake Company Business Reviews (CBRs) for PE’s and Management and Independent Business Reviews (IBRs) for creditors, as the basis for robust restructuring advice
Business Plan Review
Stakeholder analysis & valuation /
options review
Deloitte Business Review
(IBR/CBR)
Establish:• Where the business is• Where it will be
Establish:• What the options are• What the client should do
CBR often restricts our scope to Business Plan review, which is insufficient for creditors, although CBR providers are able to support Management through the restructuring
process thereafter
13© 2020 Deloitte Oy, Group of Companies.
The Business Plan Review
14© 2020 Deloitte Oy, Group of Companies.
Stakeholder analysis & valuation / options review
15© 2020 Deloitte Oy, Group of Companies.
Key stakeholders
ShareholdersDebt
traders /investors
High yield debt
Banks andother financial
institutions
Lease &asset finance
creditors
Trade Creditors
Creditinsurers
BondProviders (Sureties)
Pension Funds
Vendorfinanciers
• Normally (close) to fully secured
• Rarely compromise
• Deficit reduced
• Continuity of contributions
• No economic interest
• Hold-out for sweetener
• Interested in continuity of trading as are low ranking creditors
• Contract continuation
• Bond runoff
• Short term profit
• Purchase price of debt determines motives
• Maximise realisations
• Focussed on security
• Sometimes Banks don’t have (much) security
• Reduction in exposure
• May take unilateral action
Company
16© 2020 Deloitte Oy, Group of Companies.
We work for a range of stakeholders
17© 2020 Deloitte Oy, Group of Companies.
Typical sections of an IBR-report
18© 2020 Deloitte Oy, Group of Companies.
Project Arrow - Independent Business Review for a Fashion Brand
19© 2020 Deloitte Oy, Group of Companies.
Nordean kommentti ja keskustelu
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Deloitte Restructuring WebinarRahoittajan näkemyksiä IBR:stä
Mikko Mörsäri, Nordea Etelä-Suomen yrityspankkialue
5.11.2020
Confidential
• IBR:n laajuus on suoraan suhteessa asiakkaan kokoluokkaan
• Selvityksen pitää olla kantaa ottava
• Review’n on kuvattava selkeät toimenpiteet tervehdyttämiseen ja aikataulu niiden implementointiin
• Preferoimme hyvin operatiivisia ja mitattavia selvityksiä
• Tuki päätöksenteolle esim. Nordea FI Business Bankingissa n. 20-40 kpl / vuosi
• Nykyisellään tyypillinen haaste IBR:ssä: ovat liian geneerisiä ja selvitykset jäävät ylätasolle
• Käytännössä CRO on osoittautunut erittäin toimivaksi ratkaisuksi
Esimerkkejä kohdennettujen selvityksien teemoista:
• Yhtiön ansaintalogiikan verifiointi ➔ liiketoiminnan elinkelpoisuus (markkina, kilpailijat, asema kohdeyhtiön asema)
• Governance-malli, mikäli siinä arvioidaan olleen ongelmia (tätä ei aina edes edellytetä)
• Myös tutkimukset / kartoitukset rahoituslähteistä laajalla scopella
Koottuja näkemyksiä Nordeasta aiheeseen
Kiitos!Mikko Mörsäri
23© 2020 Deloitte Oy, Group of Companies.
Kiitos osallistumisesta ja tervetuloa uudelleen!
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Restructuring Services –webinaari, osa 2
Chief Restructuring OfficerMiten kriisitilanteita johdetaan tehokkaasti, miten sidosryhmien yhteinen tahtotila muodostetaan ja millainen on hyvä CRO?
Webinaari 19.11.2020 klo 9:00
25© 2020 Deloitte Oy, Group of Companies.
Deloitte yhteistyökumppanina
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26© 2020 Deloitte Oy, Group of Companies.
With over 1,750 dedicated professionals globally, you can count on our global Restructuring Services community to have your back in business defining moments
GLOBAL NETWORK NORDIC COLLABORATIONNORTH & SOUTH EUROPE
312 000practitioners
150 countries
and territories
Revenue
$46.2bn
45 000practitioners
Belgium, Netherlands, Nordics, Switzerland, UK, Ireland, Italy, Greece, Malta and the UAE
6 000practitioners
Denmark, Finland, Iceland, Norway, Sweden
600practitioners
Helsinki, Tampere, Turku
Revenue
€ 79.3m
DELOITTE IN FINLAND
Audit
• Assurance & Attest
• Actuarial & Insurance
• Forensic & Dispute
• Outsourcing
Consulting
• Strategy
• Operations
• Human Capital
• Technology
Financial Advisory
• Corporate Finance
• Transaction Services
• Operational M&A
• Restructuring
Tax & Legal
• Corporate Tax
• Personal Tax
• M&A Tax
• Legal Services
• VAT, Customs & Duty
Risk Advisory
• Control Assurance
• Risk Management
• Internal Audit
• Sarbanne-Oxley
• IT Security Control
Read more about Deloitte’s Restructuring Services in Finland byfollowing this link: Restructuring Services Finland
2017 Global Leader in Financial Distress and Recovery ConsultingAcknowledged by ALM Intelligence
27© 2020 Deloitte Oy, Group of Companies.
We help companies and their key stakeholders take control of business challenges and drive value creation across the entire spectrum of corporate performance from performance optimization to insolvency
Crisis
Distress
Insolvency
Stress
Underperformance
Normal
Corporate
Performance
Level of InfluenceManagement Creditors
M&A opportunities
M&A opportunities
M&A opportunities
M&A opportunities
M&A opportunities
TURNAROUND & CRISIS MANAGEMENT
PORTFOLIO STRATEGY & OPTIMIZATION
DISTRESSED M&A ADVISORY
FINANCIAL RESTRUCTURING
INSOLVENCY & LIQUIDATION
POWERED BY RS ANALYTICS
28© 2020 Deloitte Oy, Group of Companies.
We provide a comprehensive suite of Restructuring Services to drive value creation through strategic, operational and financial restructuring and performance turnaround programs
PORTFOLIO STRATEGY & OPTIMIZATION
We help businesses form a fact-based view of performance and determine restructuring strategies for business portfolios and individual businesses. Moreover, we provide tailored strategic analyses to support financial restructuring. Our services include:
• Company Business Review (CBR) & strategic options
• Business portfolio restructuring
• Business restructuring and corporate simplification
• Tailored strategic analyses e.g. scenario modeling
• Divestiture, carve-out and managed exit
TURNAROUND & CRISIS MANAGEMENT
We help businesses that are unable to meet their financial targets identify and capture opportunities impacting costs, EBITDA and cash flow. Moreover, we help plan and manage turnaround programs. Our services include:
• Operational analysis & opportunity prioritization
• Turnaround strategy and transformation planning
• Operational restructuring and performance improvement
• Cost take-out and working capital improvement
• Crisis management & CRO services
DISTRESSED M&A ADVISORY
We support distressed businesses form an independent view of asset
quality, identify M&A options, and undertake accelerated M&A along
with advising holders, buyers and sellers of debt on loan portfolio
transactions and deleveraging. Our services include:
• Asset Quality Reviews (AQR)
• Accelerated M&A advisory
• Deleveraging advisory
• Portfolio lead advisory
• Valuation (special situations)
FINANCIAL RESTRUCTURING
We offer a comprehensive financial restructuring services to distressed
companies and their stakeholders to help them form a fact-based view
of performance, identify options and undertake financial restructuring.
Our services include:
• Independent Business Review (IBR)
• Capital structure options and modelling
• Distressed debt and covenant advisory
• Negotiation and implementation support
• Cash management and 13 week cash flow forecasting
INSOLVENCY & LIQUIDATION
We support distressed/crisis companies and restructuring
administrators with formal enforcement procedures by providing
strategic/financial analyses and continency plans under consensual or
enforcement scenarios. Our services include:
• Consensual / non-concensual restructuring plans
• Contingency plans
• Tailored strategic and operational analyses
• Talílored financial analyses e.g. bankcruptcy modelling
• Special audit of accounts
RS ANALYTICS
Our RS Analytics experts are an integral to our services bringing
advanced analytical capabilities to deliver to help our clients out of
challenging situations. We deliver in-depth data-driven insights to
decision-making processes by leveraging analytical solutions including:
• Top Down Tool – Trends, scenarios and target value gap
• RS Dashboard Suite – Interactive P/L and BS drill-down
• Market Edge – Market/industry insights and scenarios
• CashTrack – Short-term liquidity modelling
• Tailored analytics and data visualization (Tableau) solutions
29© 2020 Deloitte Oy, Group of Companies.
Independent Business Review (IBR) – We can tailor the scope of our analysis to support your specific decision-making criteria and process
STRATEGIC REVIEW
Analyze the attractiveness of the market and the company’s
competitive strength to generate revenue/profits as
outlined in the strategy along with associated key risks.Structure, Governance
& LeadershipMarket & Industry
AttractivenessCompetitive Strength
& PositioningCustomer Base,
Satisfaction & LoyaltyStrategic Scenarios
Strategy/Business Plan Feasibility
OPERATIONAL REVIEW
Analyze the operational performance, capabilities and
development initiatives to identify opportunities to improve
e.g. EBITDA, working capital, cash flow and other KPIs.Core Capabilities,
Assets & ResourcesBusiness/Operating Model Alignment
Development Initiatives/Portfolio
Performance Analysis & Benchmarking
Productivity & Staffing
Working Capital Improvement
FINANCIAL REVIEW
Analyze the historical financial performance, current
position and future outlook and associated risks along with
possible deep-dive analyses on select critical issues.Financial
PerformanceFinancial Plan
FeasibilityCost & EBITDA improvement
Cash flow & Liquidity
Assets & Liabilities
Quality of Earnings & Profitability
Analytical Framework (Indicative)
Deloitte as Your Local Partner for IBR
Scope of work is
tailored to your needs
Work is typically
delivered in 2-4 weeks
The analysis is fact-
based & independent
IBR enables you to
make tough decisions
Trusted partner to
meet all your needs
Proven approaches and
experienced resources
Deloitte refers to one or more of Deloitte Touche Tohmatsu Limited, a UK private company limited by guarantee (“DTTL”), its network of member firms, and their related entities. DTTL and each of its member firms are legally separate and independent entities. DTTL (also referred to as “Deloitte Global”) does not provide services to clients. Please see www.deloitte.com/about for a more detailed description of DTTL and its member firms.In Finland, Deloitte Oy is the Finnish affiliate of Deloitte NSE LLP, a member firm of Deloitte Touche Tohmatsu Limited (“DTTL”), and services are provided by Deloitte Oy and its subsidiaries. In Finland Deloitte is among the nation’s leading professional services firms, providing audit, tax, risk advisory, legal, consulting, and financial advisory services through 600 people in 3 cities. Known as an employer of choice for innovative human resources programs, Deloitte is dedicated to helping its clients and its people excel. For more information, please visit our website at www.deloitte.fi.This communication contains general information only, and none of Deloitte Touche Tohmatsu Limited, its member firms, or their related entities (collectively, the “Deloitte Network”) is, by means of this communication, rendering professional advice or services. No entity in the Deloitte network shall be responsible for any loss whatsoever sustained by any person who relies on this communication.
© 2020 Deloitte Oy, Group of Companies