Contingency Planning

Preparing for a range of outcomes is a vital part of any successful restructuring plan. That is why at BTG Advisory we always have a ‘Plan B’. Directors should never take for granted the success of a preferred plan and always be agile to pivot to a contingency strategy when necessary.

Contingency planning improves the chance of continuing business success by providing a clear course of action when events unfold differently than first expected. This also helps to reinforce all stakeholders’ confidence in directors’ forward-thinking planning. A credible Plan B can also prove vital to preserve an ongoing consensual restructuring. More broadly, contingency planning can guard against potentially disastrous situations – such as the death of a key member of staff, a cyberattack, destruction of a key asset (e.g. premises), or general mismanagement. However, it can also be used to maximise the potential of unexpectedly positive scenarios, like a sudden influx of orders or rapid company growth. In both cases, having a contingency plan in place allows companies to proactively manage significant business change, rather than reactively trying to make the best of a new situation.

At BTG Advisory, our contingency planning covers the full range of business sectors and circumstances. It includes schemes of arrangement, allowing for companies to be restructured without formal insolvency proceedings; recovering and protecting shareholder value and protecting jobs; accelerated M&As to maximise the value of an exit from a business; decline curve planning to ensure business actions happen at the right point in the trading cycle; and raising fresh equity for growth, where we work through the pros and cons of available options for raising capital.

We have led numerous prominent UK restructuring cases across a diverse range of sectors, which exemplify the value of robust contingency planning. Review the case study below. 

Most importantly, we take an individual approach to specific circumstances and challenges  – every contingency plan we create is entirely bespoke.