Fintech B2B business successfully restructured for growth
In the spring of 2017 ReSolve was asked to review restructuring options for an established B2B fintech business.
Although a leader in its sector, there was a recent history of cash and trading issues and a large forecast cash requirement, so it required an innovative approach to find an appropriate restructuring model. Following accelerated due diligence, ReSolve made a detailed recommendation of a debt for equity exchange, with an objective of committing investors to a medium term growth strategy for the business.
The ReSolve team was then further commissioned with two key objectives:
1. To undertake and present to the board a scoping review to establish the optimum debt and equity structure, attractive to future investors. This included a restructuring outcome based on a set of sensitised forecasts to demonstrate the feasibility of the proposal.
2. To informally secure agreement of the proposal from stakeholders and their representatives. This required negotiation with various holders of debt, preference shareholders and those holding ordinary shares in the client.
The outcome was a successful restructuring over a number of stages, with completion of the exchange taking effect in December 2017.
The business is subsequently trading successfully and embarking on an exciting growth strategy with secure backing from its investors, who have both retained value in the business and opportunities for future returns.
Ben Woodthorpe, Partner at ReSolve noted ‘We were determined to explore all opportunities to secure the future of our client’s business. With excellent support and collaboration from the stakeholders, our advisory team worked through a complex situation to achieve an excellent outcome for staff, management and shareholders’.