How will regulatory uncertainty impact restructuring decisions? has been saved
Perspectives
How will regulatory uncertainty impact restructuring decisions?
Insights from US Restructuring Outlook 2025
The combination of economic pressures, regulatory changes, and cautious capital markets will necessitate strategic and flexible approaches to debt restructuring and management this year. Our 2025 US Restructuring Outlook delves into the evolving bankruptcy trends, challenges, and opportunities within this dynamic landscape. Explore the strategic insights to capitalize on restructuring opportunities in 2025 and beyond.
How 2024 shaped the future of US restructuring?
In 2024, many sectors experienced significant transformations driven by macroeconomic factors such as rising interest rates, inflation, and geopolitical uncertainties. Bankruptcy trends revealed a notable 20% increase in Chapter 11 filings across businesses of all sizes compared to 2023, indicating broad financial strain in the market.
However, larger companies with at least $2 million in assets or liabilities saw a smaller increase in filings, ranging from 3% to 5%. Sector-specific insights showed that the consumer discretionary sector led with 89 bankruptcy filings in 2024, up from 81 in 2023, coinciding with a record-high consumer debt of $17.7 trillion. Continuing the trend from 2023, industrials and health care were also near the top of the list with 77 and 63 filings in 2024, respectively.
2025 investment opportunities amid economic slowdown
 |
 |
Distressed debt and equity investors should anticipate a wealth of opportunities in 2025, driven by an economic slowdown and more restrictive financial conditions. Sectors significantly impacted by tariffs and supply chain complexities are expected to offer compelling investment prospects. Investors are likely to adopt a discerning approach, prioritizing assets with strong recovery potential and restructuring opportunities.
In addition to conventional watchlist indicators, attention should also be given to broader market dynamics, including potential regulatory shifts, tariffs, and tax adjustments that may emerge under the new administration.
Several key factors are poised to shape the restructuring landscape in 2025, including:
Key drivers shaping sectors in 2025
What’s ahead?
2024 was a transformative year for many sectors, driven by macroeconomic factors such as rising interest rates, inflation, and geopolitical uncertainties. As we transition into 2025, these macroeconomic pressures, along with updates in bankruptcy case law and evolving lender dynamics, continue to shape the restructuring landscape, offering both challenges and opportunities for businesses and investors.
To gain deeper insights, get your copy of the US Restructuring Outlook 2025.
Contacts
Advisory Senior Manager
Deloitte Transactions and Business Analytics
Recommendations
Deloitte T&R Newsletter
See how Deloitte Turnaround and Restructuring can help turn your M&A ambitions into achievements.
Turnaround & Restructuring 5x5: Actionable insights
Everything you need to know about corporate restructuring
