An overwhelming majority (87%) of Irish businesses have become more viable as a result of restructuring initiatives. The majority (70%) of companies are planning further restructuring activities in the year ahead despite such business reorganisation remaining a significant challenge for most (84%). These are some of the key findings from PwC's Business Barometer on restructuring carried out in early February 2012.
Speaking at the launch of the Business Barometer, Brian Bergin, Restructuring Partner, PwC, said:
"The survey confirms that Irish businesses have undergone significant restructuring in the last few years with even more restructuring planned in the future. While much of the restructuring to date has been operational in nature, the funding side of the business is coming more and more into focus as businesses strive for stabilisation."
Brian Bergin continued; "The key challenge for successful restructuring, according to the barometer, is achieving team buy-in. There is no doubt that excellent people engagement is critical for successful restructuring and for the benefits to be sustainable."
Other key findings included:
Declan McDonald, Restructuring and Insolvency Director at PwC concluded:
"We are seeing more companies seeking to restructure their debt and balance sheets. In many cases corporate debt has become unsustainable and hence the requirement to restructure. To do this any business should ensure that it is in good shape operationally prior to looking for any debt restructuring agreement with its lenders and prepare a realistic plan demonstrating the future viability and debt capacity of the business."
Notes to editor:
The PwC Barometer on Restructuring was conducted in the first week of February 2012 and participants included key decision makers across a range of companies including financial services companies in Irish business.
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