Selecting A Restructuring Advisor
Robert Dix worked as an advisory partner in KPMG and headed up the transaction services division until his retirement in 2008, when he set up Sopal Advisors. Following the financial crash, Dix worked on restructuring some of the largest corporate failures in Ireland, assignments that took him around the world.
Sopal Advisors’ clients have included Actavo, Allianz, Blackstone, Center Parcs, Dalata Hotels, Glenveagh Properties, Grafton Group, Quinn International Property Group and Western Union.
According to Dix, when a company is in difficulty it is very important that the directors take stock of the situation to ensure the company does not continue to trade while insolvent, as this can have serious personal consequences for the directors.
“When it is evident to the directors that a company, while not insolvent, is moving into the ‘zone of insolvency’ (a US concept), it is important that they get the very best advice as to how to move forward,” Dix adds.
“It can be a very unsettling and stressful time for directors and whoever they appoint needs to be able to give them the support and advice to navigate the uncharted waters they find themselves in.”
In considering who to appoint as a restructuring advisor, in Dix’s opinion the following attributes are the ones that directors should be looking for:
+ The person should have a proven track record in successful appointments in the past.
+ The person should have relevant sector experience and have handled similar situations previously. “The last thing directors need is someone learning on the job,” Dix remarks.
+ The person should have access to the resources required to carry out the work, as some assignments can require a large number of qualified people to handle the job.
“I would always advise directors to look for someone who is practical and has a good modicum of common sense while still abiding by the rules,” says Dix. “Directors should look for someone who has good commercial sense, the ability to think outside the box, and who can tailor a solution to get the best result possible for all stakeholders, employees, shareholders and creditors.”