Restructuring of Iberian business

Restructuring of Iberian business Extreme market conditions in the Iberian peninsula leading to the need for reinvention and enterprise restructuring
The adverse economic environment that we are experiencing in recent years has had a devastating impact on the Portuguese economy, visible in bankruptcy (50/day for the first 9 months of the date of this article -16,500), unemployment (15.8%, 3. No louder and louder the U.S. ever since records of BdP, 1953) and severe liquidity problems and financing that companies face.
The autumn economic forecasts of the European Commission (EC) point to more bad news for Spain. The EC points to a further contraction of GDP this year to 1.6% and 1.5% for 2013 (Citibank indicates a contraction of 3.1% for Spain in 2013).
Spain is the main destination for Portuguese exports - was our main trading partner in the first half of 2012 (22% of exports of goods according to INE) - a fall of 4.1% compared to the same period last year anticipates additional difficulties to our (fragmented) export industry.
Given these market conditions we live in, and to compete in an increasingly global world, it is now absolutely essential that companies rethink their business model, restructure and reinvent themselves.
The restructuring of enterprises can not only be financial, must also be strategic and operational
One of the main lessons from our experience is that corporate restructuring has to go further than the financial aspect, also requiring a program of strategic and operational measures - under penalty of being only mitigation actions with short-term effects of 12 to 18 months, but not sustainable in the long-term.
Paradoxically, the creditors of the companies / groups - including banking - still focus primarily on presentation ofa commitment to financial restructuring, not giving due importance and necessary component to the strategic and operational.
That little relevance given the strategic and operational restructuring is evident in numerous cases both in Spain and Portugal in the order in which calls for the development of such programs - usually a fairly advanced point of negotiating refinancing - deciding to hire expert help with Based on cost and "proximity" (eg, audit firms).
We believe that restructuring the German model is a model much more powerful, pragmatic and with better results. Financial institutions seeking companies / groups debtors transform your business model, ensuring its long term sustainability.
This model is based on an integrated view of restructuring Strategic, Operational and Financial, with excellent results where it was applied.
Restructuring programs - holistic and pragmatic, with experienced teams in the operationalization and implementation on the ground
For a successful restructuring program is necessary that we change the purely financial compliance return of debt and interest, for a restructuring that includes holistic strategy and operations with financial commitments in order to understand the options and necessary decisions.
The several options available are usually structured in a restructuring concept - a good design or configuration of the conceptual component is essential, and this involves reviewing available resources and their allocation, conditions and market position, revenues, costs and assets.
The strength of the concept is fundamental, but only the starting point, not enough per se. They are known several cases where its operationalization and implementation failed, despite the approval of the concept by decision makers.
Several reasons can be identified including the need to explain and align management and employees for their support and motivation. Another key reason is the need to add business experience in the review of the restructuring plan and its implementation, can not be merely conceptual and "powerpoint".
So, it's necessary to operationalize and delivery on the ground with people with practical experience and experienced in this type of challenges - and possible forwarding companies in a downward spiral (with settlement in sight), a lot more adjusted to a new reality and with a credible future project.
After almost 200 years, evolutionary a.teoria - Darwin is very topical today, "It is not the strongest who survive, nor the most intelligent, but those who adapt to change." - And this is the pragmatic challenge of the national economy and business.
2013-01-08 10:06:43
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