Business Rescue and Turnarounds
Chapter 6 of the Companies Act has provided much needed distress relief for South African businesses in trouble. However, “Business Rescue” is a much-feared, legally complex and overwhelming process. Firebird understands the legislation and its application to deserving and relevant businesses.
Firebird's CEO is a Senior Practitioner, qualified in the University of Pretoria’s Business Rescue Certificate course, and has hands-on BR experience. As Firebird’s appointed BR she will steer the company through this difficult process and ensure that the distressed company can convincingly demonstrate the ability to repay critical Post-Commencement Finance.
Transaction funding and capital raising
Knowing who to approach for capital and how to position your funding application is critical to project feasibility. Firebird Advisors has an extensive funding network comprising commercial banks, DFI’s, angel investors, private equity funds, impact funds, investment houses and distressed asset investors, and will ensure that only select and well-matched funders are offered the opportunity to quote.
Firebird is able to work with clients to prepare initial investment packs, assess term sheets, deal terms and pricing, right through to closure of funding agreements and ongoing management of deal covenants.
Transaction Risk Assessment
Due diligence – a due diligence is a vital source of comprehensive data and, not only informs the buyer as to the state of business and associated risks, but often forms the basis of future engagements and helps to craft the deal structure to incorporate important risk mitigation strategies. Firebird believes this simple but intensive investigation procedure is the key to doing a good deal.
Valuations – an early consideration in the deal process is what to pay for an asset. Firebird has many years of experience in valuations. The best transactions are always win : win, ensuring a sustainable relationship for the future, and Firebird will ensure that a fair value is agreed by the parties.
Deal structuring and negotiations – inevitably issues arise during the due diligence, valuation and funding processes that weren’t factored into the Buyer’s early synergy and valuation models. Firebird understands that this is a natural part of the deal process and that these issues can worked out during negotiation and/or mitigated in deal structuring. Firebird works closely with trusted tax advisors and legal firms to ensure that the deal stands the test of time (and SARS).
Post Deal Management
Deal implementation needs both an eye for the detail as well as strategic oversight. Management often needs implementation and executive support and a communication channel to new shareholders.
We take non-executive board seats if necessary and active Exco roles to support buyer outcomes. Firebird has extensive experience in providing board and functional oversight which are critical during ownership transitions.