Companies involved in acquisitions, divestitures, or spin-offs are mainly using a portfolio restructuring strategy. This type of strategy includes selling off those business units that are drawing down operations or spinning off business units to raise more capital. The organization’s objective is to regain its perspective of its core business. Portfolio restructuring has the best results when the firm uses the spin-off strategy and counts on subsequent mergers rather than sell-offs.
It’s all about the health and future of the underlying assets! Sounds intuitive but amazingly often overlooked, particularly by stakeholders and investors – including Sovereigns who recently have found themselves in the role of proprietors of significant assets. These parties traditionally have not been as transparent or close to the asset as they should be, given their credit/ investment exposure.
Curatio Capital is a catalyst for change in this regard – its restructuring teams, in collaboration with its partners and associates, are focused on a holistic evaluation of assets, assessment of management teams, strategies and core processes and systems which are vital to the health of the underlying assets and any serious consideration of recapitalization opportunities.
The restructuring teams consist of two types of experienced restructuring professionals: “generalists” with expertise cross-sector in core management processes, systems, procedures, and “transformational managers” with demonstrated records of sustainable business transformation.
The “amend and extend” practices of traditional investors are under considerable regulatory and governmental pressure – in both the U.S. and Europe. New investors must take particular care in evaluating with granularity potential assets.
Amongst other things, Curatio Capital delivers transparency to existing stakeholders and investors in evaluating and “fixing” the underlying assets.