Turnaround & Restructuring

Question 1

Why this role? What do you know about T&R?

Answer 1

• focused on helping companies in financial distress recover and become financially viable again.
• such as performing financial analysis, Developing Restructuring Plans. etc.

Question 2

From your opinion, how do you analyse a company’s business and financial health? / What would you do if a company is under financial distress?

Answer 2

1. Financial Analysis.
2. Scenario Analysis and Stress Testing.
   - to evaluate the potential impact of various restructuring strategies.
3. Cash Flow Management:
   - to ensure liquidity during the restructuring process.
4. Debt Restructuring
   - restructure existing debt, including extending payment terms, reducing interest rates, or converting debt to equity.
   - Preparing necessary documentation and financial models to support debt restructuring negotiations.

Question 3

explain the key financial statements and their purposes?

Answer 3

income statement, balance sheet, and cash flow statement.

Income statement: shows the company’s profitability.

Balance sheet: a snapshot of the company’s financial position at a specific point in time.

Cash flow statement: the company’s cash inflows and outflows.

*remember the specific items in the financial statements.

Question 4

The difference between gross profit and net profit?

Answer 4

Gross profit: revenue minus the cost of goods sold (COGS).

Net profit: gross profit - all other expenses, i.e: operating expenses, interest, taxes, and other costs.

Question 5

Describe a situation where you had to analyze a large dataset. How did you approach it?

Answer 5

• I had an experience analysing a large dataset when conducting my degree dissertation.
• Had to analyze over 300 data.
• Used SPSS, to fulfill my dissertation objectives.

Question 6

(Situational) How would you approach a project where you have to analyze a company’s financial health?

Answer 6

• Analyze its financial statements.
• Benchmarking against industry standards.
• Conducting ratio analysis (Liquidity ratio)

Question 7

(Situational) If you are assigned to multiple projects with conflicting deadlines, how would you prioritize them?

Answer 7

• list down all the tasks, value it based on its priority and urgency.
• using excel or project management template to track things down.