Simon Cathro was appointed as a safe harbour advisor for a start-up pharmaceutical company. The purpose of the appointment was to assist the company through the development…Simon Cathro was appointed as a safe harbour adviser for a startup pharmaceutical company. The purpose of the appointment was to assist the company through the development and monitoring of a restructuring plan.
Background
The business was supported by a group of high net-worth investors supportive of the company and wanting to avoid external administration.
The board met frequently to consider the options and financial position of the company.
The restructure required a focus on reducing overheads and cash burn, exploring possible capital injections and seeking potential buyers for the business.
Cost reduction initiatives included vacating office premises, exiting burdensome contracts, reducing workforce and winding back unprofitable products.
Options such as debt and capital injections, share-swaps and further acquisitions with various parties were explored in detail.
COVID 19 presented some unique challenges but also opportunities, with the business able to reduce unfavourable contract arrangements and pivot to improve revenue through selling “pandemic-focused” products.
How did we assist
During our engagement, we assisted the board in their decision-making by undertaking the following:
- We provided a comprehensive analysis of the financial position and performance of the business, and assessed the businesses’ viability.
- We developed a model to enable the board to consider and compare the various options available to the business and impact on stakeholders.
- We advised the board in meetings and provided guidance and support during peak periods in the restructure.
- We assisted in certain negotiations of key stakeholders.
Outcome
The business was successfully restructured and continues to trade in confidence.
