independent business review - deloitte · 2020. 11. 5. · +358 (0)9 5300 7294 mikko mörsäri...

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


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


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

[email protected]

Duesseldorf, Germany


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

[email protected]

Helsinki, Finland


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

[email protected]

Helsinki, Finland

http://www.deloitte.de/

http://www.nordea.fi/

http://www.deloitte.fi/


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


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

2

4

20212020 2022

VM SP ETLA NORDEA PT


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


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


IBR in a Nutshell – The What, Why and How?

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Introduction to IBRStefan Sanne, Partner, Restructuring & Insolvency05.11.2020


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


The Business Plan Review


Stakeholder analysis & valuation / options review


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


We work for a range of stakeholders


Typical sections of an IBR-report


Project Arrow - Independent Business Review for a Fashion Brand


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

[email protected]


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


Deloitte yhteistyökumppanina

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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

https://www2.deloitte.com/fi/fi/pages/finance/topics/restructuring-services.html?icid=top_restructuring-services


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


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


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

independent business review - deloitte · 2020. 11. 5. · +358 (0)9 5300 7294 mikko mörsäri...

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