Restructuring Advisory

BDO Saudi Arabia's Restructuring Advisory services help businesses, lenders and shareholders establish a clear, independent view of financial performance, liquidity and available restructuring options when a business is under financial pressure.

An independent business review gives management, shareholders and lenders a common, evidence-based understanding of the financial position. We analyse underlying financial information, build and assess short-term cash flow forecasts, test key assumptions and evaluate liquidity and available runway.

From that foundation, we assess the available restructuring routes and their implications, helping stakeholders make informed decisions and move from financial uncertainty to a practical restructuring plan.

Independent business reviews

Establish a reliable view of financial performance, liquidity and the assumptions that will shape the restructuring.

BDO conducts independent business reviews to help management, lenders and shareholders understand the financial position and assess whether existing forecasts and assumptions are supportable.

We work from the underlying financial records, analyse cash generation and liquidity requirements and assess the implications of different restructuring scenarios. The result is a clearer evidence base for negotiations, funding decisions and restructuring planning.

Short-term cash flow and liquidity

Understand when liquidity pressure may arise and which actions can improve the position.

Reliable short-term cash flow forecasting is critical when a business is operating close to its liquidity limits. BDO develops rolling short-term cash flow forecasts that help management understand funding requirements, available headroom and the timing of potential cash constraints.

We work with management to assess the operational levers that can affect liquidity, including collections, supplier terms, discretionary expenditure, asset sales and available financing facilities.

For businesses undergoing restructuring, the short-term cash flow can become a central management tool for monitoring liquidity, evaluating decisions and communicating with key stakeholders.

Restructuring options and contingency planning

Understand the available routes, their requirements and the consequences of each option before critical decisions are made.

BDO helps organisations assess restructuring alternatives including consensual amendments, refinancing, new funding, asset disposals and formal restructuring procedures.

We evaluate the practical implications of each route, including stakeholder consent, timing, funding requirements and execution considerations, and develop contingency plans alongside the preferred strategy.

This helps management and stakeholders understand not only the preferred solution, but also the alternatives available if negotiations or operating performance do not develop as expected.

Lender and stakeholder negotiations

Bring structure, independent analysis and realistic financial assumptions into complex stakeholder discussions.

Successful restructuring frequently depends on alignment between management, lenders, shareholders, key suppliers and other stakeholders.

BDO supports management in preparing for and navigating these discussions by providing independent financial analysis, assessing proposed restructuring terms and testing whether agreed actions can be delivered in practice.

We also advise lenders and creditors on their position in stressed borrower situations, helping them assess financial information, restructuring proposals and available alternatives.

What our Restructuring Advisory team delivers

• Independent business reviews and solvency assessments – Independent analysis of financial performance, liquidity and financial position.
• Short-term cash flow and liquidity forecasting – Cash flow modelling, liquidity analysis, financial runway assessment and covenant analysis.
• Restructuring plans and options assessments – Evaluation of available restructuring routes, contingency planning and development of practical restructuring plans.
• Working capital and cash improvement – Identification of practical opportunities to strengthen working capital, reduce costs and improve short-term cash generation.
• Lender and stakeholder negotiations – Financial analysis and negotiation support for management, shareholders, lenders and other key stakeholders.
• Lender and creditor advisory – Independent assessment of the financial position and restructuring proposals of stressed borrowers.
• Standstill arrangements – Support in evaluating and structuring temporary arrangements that create time for restructuring discussions and implementation.
• Solvent wind-down and group simplification – Advisory support for orderly business wind-downs and restructuring of group structures where appropriate.

Why work with BDO Saudi Arabia?

Restructuring decisions often need to be made quickly and on the basis of financial information that may be changing from week to week. Independent analysis can help stakeholders establish a common view of the facts and assess which options are realistically deliverable.

With BDO, clients gain:

• Independent financial analysis – We assess underlying financial information and key assumptions objectively, helping management, shareholders and lenders establish a clearer view of the business's financial position.
• Cash and liquidity focus – Our work prioritises short-term cash visibility, funding requirements and practical actions that can help stabilise liquidity during periods of financial pressure.
• Practical restructuring options – We assess available routes and their financial and operational implications so stakeholders can compare alternatives and make informed decisions.
• Credible contingency planning – We help clients develop realistic alternatives alongside the preferred restructuring strategy, supporting more robust decision-making and stakeholder discussions.
• Structured stakeholder engagement – Our independent analysis provides a stronger factual basis for discussions with lenders, shareholders, suppliers and other stakeholders.
• Support for both businesses and lenders – We advise companies navigating financial pressure as well as lenders and creditors assessing their position in stressed borrower situations.
• Multidisciplinary restructuring capabilities – Where required, our restructuring professionals can work alongside corporate finance, valuation, tax and other specialists to address interconnected financial and transactional issues.