Carillion – Opportunities and Threats

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There are thousands of joint venture partners, clients, customers, suppliers and many more connected company’s commencing a first full week of trading since Carillion’s liquidation hit the headlines who will be continuing to wonder what the future holds, and how the collapse of Carillion PLC, which went into liquidation on 15 January 2018, will affect their ongoing business.

Threats

The threat to the supply chain and associated entities is obvious. Uncertainty whilst waiting for the fall out to be clarified may see the threat to your business grow.

But what about the opportunities?

There are contracts to be completed, employees seeking certainty, customers let down and businesses needing a new home, a fresh start.

There are opportunities to win new work and secure valuable skills and resources. Proactivity, buy side due diligence, and deal structure can add significant value to your business. For those facing a significant bad debt or reduction in turnover Carillion could provide the impetus needed to be proactive in commencing a restructuring process to secure a long term future. Managing immediate cash flow constraints using appropriate restructuring techniques can strengthen a core business and isolate the weaknesses caused by the fall out of Carillion.

Whether adding turnover through the acquisition of new contracts, businesses and people, selling Carillion infected divisions, or using positive restructuring processes to manage the impact of significant bad debt or loss of turnover, turning the threats into opportunities will put you back in control.

Mercer & Hole’s Corporate Advisory team, combining experienced Corporate Finance, Corporate Tax and Corporate Restructuring personnel are uniquely placed to support you in identifying and capitalising on the opportunities arising from the Carillion debacle.

Should you wish to discuss any specific implications of the Carillion liquidations, we will be pleased to provide our guidance and support.

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