Solutions

South Africa Restructuring Industry Survey 2021

The latest edition of Deloitte’s Restructuring Industry Survey, which was carried out at the start of 2021, looks into the current state of the restructuring industry in South Africa. It covers topics ranging from the rise of the chief restructuring officer, how the business rescue process is perceived, the potential impact of technology on the restructuring process in the future and, of course, the impact of the COVID-19 pandemic.

Restructuring professionals from a broad mix of industry organisations and associations shared their valuable insights into the opportunities and challenges faced by the informal restructuring and business rescue (BR) industries in South Africa.

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.

Key contact

Jo-Anne Mitchell-Marais

Jo-Anne Mitchell-Marais

Africa Restructuring Services Leader

Jo-Anne is the Africa Restructuring Services leader and a well-recognised subject matter expert in the industry. Frequently speaking at local and Africa-related conferences, Jo-Anne is able to demonst... More