Overview

Audit

Tax

Advisory

Getting your business back on track

Why you may need our help In the current environment, even healthy businesses with a strong track record can rapidly become vulnerable. The dangers to look out for: Falling revenues as the economy contracts Loss of a major customer account Highly leveraged balance sheet Volatility in raw materials and energy costs Turmoil in financial markets Trade credit insurers withdrawing cover Many companies will have limited time to deal with the issues - the longer you leave them, the fewer options you are likely to have when action is forced upon you. Early planning can make all the difference to your chance of survival. In fact, talking to KPMG could mean not just surviving the downturn, but thriving in it. Distressed - Stabilisation and survival Liquidity is currently tight In breach of or about to breach banking facilities and covenants Credit insurance cover has been withdrawn Refinancing is overdue/stalled No other obvious sources of financing Multiple stakeholders involved in decision making Stressed - Maintaining or retaining control of destiny Growing cash flow and operating performance concerns Industry is significantly impacted by the financial crisis Concerns over the ability to meet the banking covenants Refinancing is due in the next six months Unlikely be able to shore up balance sheet with equity injection Concerns over solvency of customers and suppliers At Risk - Preparing to respond to a recessionary environment Currently profitable but deterioration of performance has started or is expected Long term financing in place but concerns over ability to meet covenants if performance deteriorates Competitive position weak Refinancing due in next 6-18 months Highly leveraged balance sheet Robust - Seeking to maximise competitive advantage to exploit opportunity Currently profitable and in foreseeable future Strong and stable competitive position Cycles defensive industry No cash flow or working capital concerns Substantial cash resources therefore able to act as predator in rapid acquisitions Long term financing in place No concerns over breaching of covenants in the future For further information about our services, or if you would like one of our professionals to contact you, please contact Yaovaluk Likitwattananurak, Director, Financial Risk Management.