Strategic expansion has given way to rapid contraction in the EU and US, as many groups seek to scale back peripheral operations and re-focus on their core business. In contrast to most Western markets, a majority of FS organisations in Asia remain intent on expansion, especially as they seek to improve their offering to the region’s growing middle class.
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.
PwC 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:
Edgar C Lavarello
Patrick S Pilcher
Tel: 20066842 ext 309