If there is one clear message the past 18 months has driven home it is that in business, times can be tough. Global circumstances, shifting demands or simply a change of focus or pace – when stability is threatened, clarity and creativity are needed.
Alvarez & Marsal is a global professional services firm noted for its work in turnaround management and performance improvement, and Stuart Deacon is a managing director in the restructuring practice, based in London.
Alvarez & Marsal works with clients across a wide range of services including corporate transformation services, performance improvement in private equity, tax, valuations and regulatory and risk advice. Its focus is on stabilising financial and operational performance by tackling problems head on and driving change.
Stuart Deacon’s background is in mergers and acquisitions (M&A) and restructuring, with a particular focus on transacting in special situations. After more than 20 years in specialist corporate finance, including countless complex and difficult M&A deals in a range of industries, his experience in finding funding solutions for businesses in distress has forged unique relationships within the private equity sector. In fact, there is a whole sub sector of PE dedicated entirely to investing in such deal activity, with significant funds available to invest in UK across all markets and business sizes.
Stuart’s passion is working with businesses owners and management teams to help them to consider their options when the going gets harder.
“Clients come to me because they are facing a set of circumstances that mean the business is not in a strong position,”
Stuart explained.
“It could be that some or all areas of the business are failing, or it could be a burning-platform issue, like COVID-19, that has highlighted or triggered problems.
“What that business needs is a quick answer. Of course, the eventual restructuring process may need careful planning and timing of execution, but that initial assessment, whether or not there is a course of action and what it might be needs to be rapid. Until we’ve done that initial assessment, we don’t know what the picture looks like, but the earlier it is done the more options will remain available to the board. There may not be a perfect solution, but it’s in everyone’s interests to try to find the optimal one.”
Stuart and his colleagues in the restructuring practice help businesses that either self-refer or are referred to Alvarez & Marsal by another professional, such as a lawyer, accountant or lender. Company directors have a fiduciary duty to shareholders to address issues in an appropriate manner and reference to a restructuring expert is an acceptable approach in the process of trying to save a business from failure. In addition to those referrals, Alvarez & Marsal, globally, provides an avenue through which chief restructuring officers across the world refer UK-based offices or subsidiaries of large international firms to the London team.
Inevitably, the need for assistance and restructuring is a stressful time for business owners or managers who, as well as having financial worries, are also considering the effects their actions will have on a dedicated and loyal workforce.
“There can be a certain amount of hesitancy from the people at the top and it’s often the non-executive directors that see the bigger picture and suggest a particular course of action,” said Stuart. “Good directors will have a close eye on governance as part of their duties and there will come a point where they know they have to act. That said, it’s a really challenging time for management who are worried about their workforce and, at the same time, worried about their business and their future, and that’s an enormous
responsibility.
“As an adviser, you become very quickly immersed in the business, and if you can find the right solutions, by bringing together technical, industry and sector expertise, it can be tremendously satisfying.”
Stuart’s excellent relationships with specialist debt and equity providers often means a solution can be realised. Where the team feels a business isn’t a fit with Alvarez & Marsal, there is always an opportunity to refer to an alternative source of help.
“A good professional will always refer a client on if they are not able to help,”
explained Stuart.
“There are investors across the industry for businesses of all sizes, so a solution can often be found. Ultimately, it’s always better in the long run to restructure a business and turn its fortunes round. No one wants to see a business fail. Some are simply not viable, but on the whole, a positive outcome is what we want, and it’s very satisfying when that happens.”
Find out more about Alvarez & Marsal at www.alvarezandmarsal.com