We were requested by a Middle Eastern-based public company to review a portfolio of approximately 120 separate manufacturing companies across many different jurisdictions in EMEA and the Far East.
We identified several issues facing the group, including group management structure and strategy, difficult and indistinct bank relationships, and property and taxation issues. A CRO from our panel was introduced and we prepared an Entity Priority Model, estimating outcomes for the shareholders in six different scenarios. Proposed courses of action for equalisation of intercompany accounts and large potential recoverable tax losses were devised, as well as evaluating the impact of the onerous property leases in terms of ongoing, holding and dilapidation costs.
We were able to recommend strategies to exit the non-core businesses while protecting and optimising value in the client’s investments in these and the core businesses.