Solvency Management

It is a proven fact that businesses who recognise and acknowledge the signs of trouble and get help in the early stages, have a much better chance of a successful recovery for their business.

A company can face financial distress as a result of a number of factors – too much diversification, loss of market share, poor management decisions, excessive debt, inadequate equity capital, poor lender relationship, inadequate reporting and accountability etc. This presents a unique set of challenges to management to try and turn looming failure into sustained growth and profitability and requires specialist turnaround consultants to assist in the process. This is where dVT Consulting can help…

Our commitment to you

We can provide an independent, reliable service to help determine where a company is facing financial or business distress and assist by determining the appropriate methods (formal or informal) by which to deal with the critical issues but at the same time maximizing business value wherever possible.

dVT Consulting’s approach is to tailor a program that specifically addresses the concerns and risks of the business and conquer to deliver the best, cost effective solutions to ensure clients are not only meeting their true potential but have the steps in place to ensure future growth and success. Our repeat business and industry referrals tells us we must be doing something right.

We maintain strict levels of confidentiality in all our assignments.

Examples of services we provide:
• Turnaround Management
• Solvency Reports
• Corporate Restructuring
• Business Recovery
• Creditor ProposalsEach assignment is unique and the strategies are geared towards a company’s particular financial and market position. However, most strategies will include:• Management change – the appointment of external consultants to advise and oversee the policies adopted
• Emergency Action Plans – short term strategies devised to maximize immediate cash flow and reduce further losses
• Situation Analysis – development of strategies based on the company’s position and perceived future opportunities or threats
• Business Restructuring – development and implementation of medium to long term plans to increase and sustain profitability
• Monitoring and Growth – change becomes the norm and the company’s performance is evaluated on an ongoing basis to determine whether strategies are effective.
Types of assignments undertaken:

• Market share under threat from competitor’s behaviour – establishment of management systems and controls, appointment of appropriate senior management to oversee operations, establishment of KPI’s and reporting systems and monitoring of results.

• National production facilities in Australia employing over 600 staff. The group needed organizational restructure, production cost cutting, implementation of best practice accounting processes and a marketing strategy. Riad Tayeh of this firm was appointed interim CEO and achieved exceptional sustainable growth beyond the owners’ expectation.

• Turnaround Management – reviewed financial position of major national sporting organisation in Australia. Company had embarked upon an event that caused it to go into considerable deficit, which its future trading could not allow it to recover from. Financial & Operational restructure was carried out, commencing with negotiations with creditors followed by a rationalization of the activities of the sport and consequent reduction of expenses. This enabled the sport to continue operating and compete in world championships and the next Olympics. The Australian Sports Commission is considering using this structural and financial model to assist other similarly troubled sports.

• Borrowers and lenders: we can provide an independent appraisal of a borrower’s financial position and provide strategies for growth which can help assist both borrowers and lenders resolve a company’s problems.

References are available on request.