Financial Restructuring
We realize that sometimes companies face the reality of slower growth driven by the changing economic environment. At Seeds, we help you create an action plan for the pre and post-financial restructuring process, along with contingency plans. This allows for stable business, healthy stakeholder relationships and the building of a strong platform for the future.
When to Restructure?
Weak Returns
Loan Agreement Breach or Payment Default
Capital Draining
Non-Core Assets
High Debt
Diverging Priorities of Various Stakeholders
Lack of
Efficiency
Excess Equity
Under-Performing Businesses
Case Study: Financial Turnaround for a Vaccine Factory
(This project was completed by our principal consultant during her time at Gulf One Investment Bank)
A factory in the Eastern Province of the Kingdom produces vaccines for plants. Upon in-depth analysis of the company, we found a high amount of debt and low income generation, even though they are the only factory in the Kingdom that produces such vaccines.
Our next step was to create contracts with the Ministry of Health, and perform diligent financial structuring so as to cut costs and pay a lot of the accumulated debts.
The company was valued at $25 million, and 3 years after the financial restructuring the company was valued at $250 million. A 10x increase in company value.