“If you’re going through hell, keep going.” — Churchill, Winston
Hong Kong – July 29, 2024 – By Tactical Managements founding partner, Dr. Raphael Nagel
This beautiful phrase strikes a deep chord with companies that are struggling financially. As a Hong Kong-based private equity firm, Tactical Management specializes in managing troubled real estate, turning around underperforming businesses, and settling non-performing debts. By using calculated risks and careful planning, we have successfully turned financial chaos into organized success on several occasions.
Knowing What Non-Performing Loans (NPLs) Are
Loans that the borrower is not repaying any principal or interest on are known as non-performing loans. With a large percentage of non-performing loans (NPLs) in their portfolios, banks and other financial institutions frequently encounter formidable obstacles. These loans have the potential to deplete funds and affect overall financial security.
Case Study: Financial Institution in Southeast Asia
In one of our noteworthy projects, a big bank in Southeast Asia was dealing with a concerning amount of non-performing loans (NPLs) after the recession. Our strategy has several facets:
- Comprehensive Analysis: To identify high-risk industries and borrowers, we thoroughly examined the bank’s loan portfolio.
- Restructuring Plans: We created interim interest rate reductions and updated repayment schedules for enterprises that were deemed sustainable.
- Asset Liquidation: We assisted in the liquidation of collateral assets, such as troubled real estate, in order to recover losses on irrecoverable loans.
By the time our assistance came to a conclusion, the bank had rebuilt investor trust, substantially decreased its non-performing loan (NPL) ratio, and increased liquidity.
Opportunities and Challenges in Distressed Real Estate
Properties facing foreclosure, bankruptcy, or other financial issues are considered distressed real estate. These properties frequently offer exceptional investment opportunities, but in order to realize their full potential, caution must be taken.
Case Study: Retail Complex in Europe
Mismanagement and dwindling foot traffic caused a European retail complex to fall into ruin, causing serious financial difficulty. Tactical Management intervened in the following ways:
- Market Analysis: To find possible applications and tenant combinations that would revitalize the complex, we examined the local market environment.
- Strategic Redevelopment: In order to update the space and draw in new tenants, we managed a partial renovation that included a variety of food, entertainment, and retail establishments.
- Engagement of Stakeholders: In order to guarantee a smooth transition and long-term occupancy rates, we worked extensively with both current tenants and possible new ones.
The complex was turned from a financial liability into a profitable asset in less than 18 months when it was fully leased and saw an increase in foot traffic and revenue.
Reviving Underperforming Businesses
Underperforming businesses face challenges for a variety of reasons, such as ineffective management, inefficient operations, or unfavorable market conditions. The skill of Tactical Management is in identifying these problems and putting turnaround plans into action.
Case Study: Manufacturing Firm of Mid-Sized
Due to antiquated manufacturing techniques and lax financial controls, a mid-sized manufacturing company in Asia was experiencing diminishing revenues and growing debt. Our turnaround approach included the following:
Operational Overhaul: To increase productivity and cut expenses, we modernized technology and implemented lean manufacturing practices.
Financial Restructuring: In order to stabilize the company’s finances, we renegotiated conditions with creditors and added new funding.
Leadership Transition: To guide the business toward expansion, we brought in a new management group with track record in the field.
The company saw a substantial turnaround in less than two years, with increased profitability, lower debt levels, and a more competitive market position.
The Method of Tactical Management
Every crisis, in the opinion of Tactical Management, is an opportunity. Our method is based on careful preparation, strategic analysis, and methodical implementation. Important tenets that direct our initiatives consist of:
- Transparency: Open communication with stakeholders to build trust and ensure alignment.
- Customization: Specifically designed solutions to meet each client’s unique requirements and difficulties.
- Sustainability: Long-term plans that guarantee continued success after the first stage of recovery.
Our experience and dedication are demonstrated by our track record of successfully managing non-performing loans, reviving distressed real estate, and turning around underperforming businesses. Businesses facing financial instability may find the road ahead difficult, but success is attainable with the correct partner. Winston Churchill said, “If you’re going through hell, keep going.” This is sage advice.
Visit our website or get in touch with us personally for additional information, case studies, and insights on how Tactical Management might benefit your company. By working together, we can transform obstacles into chances and create a path for long-term success.
Contact information:
Tactical Management Ltd.
Dr. Raphael Nagel (LL.M.)
info@tcaticalmanagement.ae
www.tacticalmanagement.ae
LinkedIn
info@tacticalmanagement.ae