Turnaround industry structure


Turnaround industry structure


Informal turnaround sector

The informal turnaround sector consists of capital and service providers.

The capital providers are banks and investors.  They don't play a big role in management-led correction other than in financial restructuring. 

In workouts, however, they represent those financiers caught up with a distressed company, and wishing to get out and/or safeguard their exposure.  They may also represent those that may come to the distressed company' rescue.   Banks as secured creditors normally dictate the agenda.

The service providers work with/for both capital providers and the distressed company.  They represent two groups. 

Firstly, there are the turnaround practitioners and consultants focusing on viability assessment and turnaround management. 

Secondly, there there are management consultants, lawyers, accountants, etc. providing services relevant to the distressed company, the turnaround professionals and the capital providers.

Formal turnaround sector

New business rescue legislation provides for the appointment of a business rescue practitioner to take charge of the financially distressed company.

It is envisaged that the business rescue practitioner will, similarly to informal sector turnarounds, make use of the services of other professionals.

The web pages that follow in this section provide directories of firms and individuals involved in the turnaround industry.

This is followed by industry driving forces and industry constraints.

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