Restructuring & Turnaround
Rising interest rates and economic pressures have driven increased restructuring activity across European sectors. Understanding restructuring dynamics helps entrepreneurs navigate challenges and identify distressed M&A opportunities.
- Leading Restructuring Advisors
- Specialised advisory firms guiding distressed companies through financial and operational challenges
- Houlihan Lokey
- PJT Partners
- Rothschild & Co
- Alvarez & Marsal
- Restructuring Categories
- Different approaches depending on severity and nature of distress
- Financial Restructuring
- Renegotiating capital structure to address overleveraged balance sheets and restore solvency
- Operational Turnaround
- Implementing operational improvements to restore profitability and cash generation
- Formal Insolvency
- Court supervised processes including administration, liquidation, and pre pack sales
- Distressed Sectors in Europe
- Real estate and retail lead distress levels as structural shifts accelerate
- Real Estate
- Healthcare/Care Homes
- European Restructuring Regimes
- Each jurisdiction offers different tools and timelines for corporate restructuring
- What Drives Distressed Valuations
- Key factors that influence restructuring outcomes and creditor recoveries
- Going Concern Value
- Restructured companies are valued on projected normalised earnings with appropriate risk discount
- Creditor Recovery
- Stakeholder negotiations driven by relative recovery expectations under various scenarios
- New Money Terms
- Fresh capital injection pricing reflects elevated risk and creditor priority
- Time to Resolution
- Speed of restructuring impacts value preservation and stakeholder outcomes
- Early Warning Signs
- Indicators that a company may be heading toward financial distress
- Covenant Breach Risk
- Approaching or breaching financial covenants in credit agreements
- Liquidity Crisis
- Cash runway below 6 months, working capital strain
- Supplier Pressure
- Management Turnover
- Audit Concerns
- Customer Attrition
- Key customer losses, revenue decline acceleration
- Debtwire European Distressed Debt Report 2024, Reorg Research Restructuring Review 2024/2025, S&P Global European Corporate Distress 2024, Weil Restructuring Tracker 2024, INSOL International Annual Report 2024
- Navigate Your Restructuring Options
- Get a professional valuation and understand the options available for your business situation.
- Perspective for what comes next.
- Free to start. No account needed for the instant benchmark.