2022 Deloitte Restructuring Survey

Practitioners reveal the secret to restructuring success

The mix of restructuring professionals and the c-suite are critical to understanding the key challenges faced by the restructuring industry.

Key findings include:

• Overall sentiment for economic growth in South Africa is pessimistic for the next 12 months
• There is strong optimism for growth in restructuring activity
• External support is seen by the c-suite as less important, sending alarm bells ringing that management teams and their key stakeholders are working at cross-purposes.
• M&A is rapidly gaining pace in being the preferred exit route from distress
• Improving trust between business rescue practitioners and their stakeholders is critical to protect the reputation of business rescue as a restructuring tool
• Respondents across Africa are most concerned about local risks: political uncertainty, the emigration of talent and sovereign debt crises featured prominently across jurisdictions
• 77% of respondents believe that BRP skills are sorely lacking. This is also the view of 90% of the BRPs interviewed.

Deloitte provides restructuring, turnaround and implementation advice and services to underperforming and financially distressed businesses, their stakeholders, and advisors.

In the press:

• Business rescue in South Africa is experiencing a crisis of trust: Survey: 7 April 2022
• SABC News
• SA FM
• Channel Africa

Contact us to learn more about how we approach Turnaround & Restructuring at Deloitte