South Africa Restructuring Industry Survey 2021

Practitioners reveal the secret to restructuring success

While there are many and varied reasons why a business may find itself in need of restructuring, almost all survey respondents (94%) believe the probability of a company being turned around is 50% or greater if restructuring advice is sought when the early signs of distress become apparent. 
 

Other key findings of the survey include:

• Protecting the business and preservation of employment rank as top priorities.
• Business continuing on a solvent and liquid basis is seen as the main goal, followed by a better return for creditors.
• 88% of respondents expect increased activity levels in the restructuring industry over the next 12 months.
• Post-commencement finance (PCF) is still considered an important requirement for a successful BR process.
• Informal restructuring solutions are preferred over formal solutions.
• The unfavourable stigma attached to companies in BR is a challenge to the success of a formal restructuring process.
• 77% of respondents believe that the CRO role will be more important in the future.
• Customer relationship management tools, big data, cloud as well as AI and machine learning are some of the technologies expected to have transformational impact on the restructuring process in the coming years.

Click here to read or download the full survey results.