Many organisations in the EU and US are scaling back expansion plans in order to re-focus on core business, but a majority of FS organisations in Asia remain intent on expansion — especially to cater to the region’s growing middle class. How can FS organisations take advantage of the opportunities for restructuring and growth?

The ability to measure current and prospective risk-adjusted returns will be critical in identifying what businesses to develop or divest and convey the rationale for restructuring strategies to analysts and investors. The most successful sellers will be able to divest businesses in a way that clearly identifies value for the potential buyer and supports the long-term strategy of the group.

Restructuring will open up valuable opportunities for agile and strongly capitalised firms, who can step in to take advantage of divestment or market exit by weaker competitors. The absence of traditional sources of capital raising (such as the debt and equity markets) is likely to encourage less well-capitalised firms to explore alternative and innovative financing options to support their growth strategies. This could include private equity funding, either in the form of capital injections or strategic partnerships.

Giving you the edge

ICL has a dedicated global network of financial services transaction and business development specialists who can help financial services organisations to make the most of opportunities for restructuring and growth. This includes:

• Preparing lists of suitable targets, both for sale and for purchase
• Carrying out realistic valuation and rigorous due diligence that reflect the heightened risk and uncertainty in the current market climate
• Developing a clear and compelling rationale for prospective transactions
• Ensuring value realisation through effective post-merger integration
• Identifying the most profitable customers and focusing on the business that will reap the best returns on investment in customer acquisition and retention
• Ensuring that the business model takes full account of customers’ needs, tax, financial and regulatory considerations and the organisation’s capacity to change the way it does business
• Using new technology to develop cost effective distribution and delivery