The legal, financial and environmental team of the Risk & Restructuring Department have acknowledged expertise in the specific field of managing crisis situations, restructuring, refunding, insolvency situations, bankruptcy procedure planning, fraud detection or forensic support in the financial, economic and accounting fields.
An interdisciplinary approach combined with the knowledge built up in various sectors of activity places us in a position to identify and address strategic and operational risks, regulatory risks, as well as internal control, financial, corporate, environmental and technological risks.
Our goal is to lay the foundations to engage in the processes of strategic, financial and operational transformation to showcase the company in the medium-term.
Key issues we address
- Solving of complex and crisis situations calling for complex strategic, financial and operational restructuring processes.
- In-depth diagnosis, design and implementation of the most suitable strategy to face each specific case successfully.
- Comprehensive assistance during all stages of the bankruptcy procedure as lawyers, economists or independent experts.
- Acting when needed to ensure smooth control and management of risks, minimising the effects that may arise for both the company and its directors and partners.
- Identifying and controlling the keys to face and minimise the most critical risks and searching for alternatives to counteract or minimise their impact.
Our client experience is demonstrated thanks to the many interventions given in complex situations and processes as lawyers, economists or independent specialist experts.
Comprehensive assistance during all stages of the bankruptcy procedure.
AddVANTE has intervened as lawyers, economists or independent specialist experts for defending the interests of creditors and in bankruptcy procedures in the biggest five bankruptcy cases
submitted to the Commercial Court of Barcelona and in more than 80 bankruptcy procedures
Since the enactment of the new Law 22/2003 on Bankruptcies, we have been appointed as the bankruptcy administrators for creditors by the Commercial Courts in more than 120 procedures.
Collapse situation caused by precarious cash flow circumstances.
A company in the “audio-visual” sector with excellent positioning on the market linked to quality and creativity.
A company with facilities technically adapted to its clients’ requirements was facing a collapse situation
caused by precarious cash flow circumstances, a major fall in sales, poor management of use of space at its facilities and leadership focussed excessively on the owner.
- In terms of cash flow we examined the immediate effects of said collapse and the restructuring of the debt in the short-term.
- Collection of payments with the administration was negotiated along with bank financing for said payments and new financing instruments were launched for the collection of sums receivable.
- We examined and valued the risks of a diversion of liability for the “directors”, the equity-based risks for the “owners” and we confirmed the fact that no criminal risks would exist if the circumstances caused the company to discontinue operations.
- The foregoing steps compelled us to review LOPD procedures, the policy of cash payments to third parties, loans to partners and directors, related operations, sales to related parties, hard to justify expenses, a review of the corporate structure and, lastly, a review of the dividend policy and the contribution of resources for the group from partners.
- Once the cash flow had been brought under control and the risks identified and controlled, we then proceeded to refinance the debt with the main financial institutions and the public administration.
- The production process was accelerated according to collection periods and the quality of the clients.
- We analysed those projects that generated losses and renegotiated them or closed them.
- We introduced greater flexibility into the working conditions of staff and reduced staff costs.
- Efficiency was improved in key production processes and in certain corporate services by applying the lean methodology, making it possible to increase productivity by 40% in certain cases.
- Lastly, we incorporated measures intended to improve energy efficiency, entailing a major saving in terms of electricity costs.
Keys to success
- The work carried out allowed the company to remove latent risks that were unknown by the managers and to minimise certain risks they were aware of but regarding which the management was ignorant about their impact on the future business activity.
- A prevention and protection plan was designed to prevent the company incurring in new future risks.
- Likewise, our intervention made it possible to revert the negative trend of the company and again place it on a steady setting upholding its reputation in the sector with a strengthened business model adapted to current market needs.
Reorganisation of the business structure
Company in the “industrial” sector with financial and cash flow difficulties.
With staff of more than 200 employees and 5 subsidiaries a business reorganisation was considered and we were entrusted to analyse the situation and draw up a plan of action for support in decision-making.
Our work approach consisted with a starting point of conducting an in-depth analysis of the actual situation of the company to allow us to set the targets to meet, including the following areas:
- Preparation of a report to reflect the business group's reorganisation plan.
- Preparation and negotiation in conjunction with the company management of a workforce adjustment plan, preparing the mandatory economic report.
- Counselling from a legal standpoint on negotiating the proceeding to its closure.
- Performance of a consultancy study on the organisation of the group, including negotiation with banks and financial institutions for the definitive restructuring of the debt and establishing new funding channels.
- Prior analysis from a fiscal standpoint of the tax-related consequences of the merger and accounting advice for consolidating the balance sheets.
- Lastly, we assisted the client in drafting and formally preparing the documentation needed for the merger.
Keys to success
- Planning of the negotiation from a strategic standpoint by the consultancy team.
- Intervention in developing the work of a multidisciplinary team formed by consultants, economists, lawyers and auditors from our company.
- Thanks to the restructuring, the company secured solvency, visibility and greater scope for taking on more ambitious future projects with assurances.
Counselling on a due diligence report
Company in the “technological” sector seeking financing which has engaged in vendor due diligence.
The company, which had prepared a vendor due diligence report to provide potential buyers with information needed on the company, requested us to provide our financial perspective for all the points in the report that were liable to affect the operation.
Our client had a vast amount of information and requested us to summarise the foremost points for vendor due diligence and to expand upon them from the standpoint of the seller, analysing possible expenditure or non-recurrent income not detailed in the report. Likewise, we were requested for our general perspective on the business and a list of points to consider for future viability.
Keys to success
Using the information obtained and interviews with the management we issued a 20-25 page long report detailing all the points requested that were key to the final negotiation of the operation.
Smell test report to detect problems, incidents and areas for improvement
A family office company decided to invest in Catalonia in an unusual sector linked to health.
The company in question was capitalised by several investors, three of them the founders and one with venture capital who decided to withdraw from the investment.
The buyer was highly interested in the business and carried out fiscal due diligence to make its own analysis of the business. Nonetheless, the buyer had doubts about the business and requested our opinion about its future viability and for us to answer questions concerning specific queries that have been put to us.
The company provided us with the financial statements for the previous year ended and those from previous years as well as a visit with the directors and administration manager who answered our questions for a day. Within 24 hours we were attended by the auditors who also answered the questions raised.
Keys to success
Within a week, including interviews with the management and auditors, we prepared a compact direct report
setting out the points defined in our letter of assignment including certain future recommendations. Likewise, the report took into account the fact that if uncertainties were observed we would value them according to their likelihood. The report was submitted in a meeting with the management and used for negotiating the final purchase price.
Partner of the Risk and Restructuring Department
Managing Partner of the Advisory Department
Managing Partner of the Legal Department
Partner of the Legal Department
Partner of the Counselling Department
Partner of the Counselling Department