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Restructuring options for businesses in a stressed market

Shaun O’Callaghan Shaun O’Callaghan

Following a difficult year for the UK economy, with volatility and uncertainty having a significant impact on businesses across all sectors, there is little evidence of this changing in 2019. For businesses feeling the strain, it is key to understand the financing options that are available.

The political and economic uncertainty of 2018 - for both the UK and the world at large - has understandably caused strategic, trading and sometimes financial challenges for businesses. For example, reduced visibility on both consumer and corporate spending has reduced confidence from business leaders to invest into new assets and capabilities, which has had a knock on effect on spending throughout the economy.

The consumer, healthcare and construction sectors continue to be most affected, but we have also noticed a rise in the level of stress in the financial services sector. The recent failure of Wonga (of which we are Administrators) is a prime example. As regulation continues to evolve in the sector it is going to place further pressure on businesses, both in terms of the cost of complying with regulations and potential redress payments.

However, there are also more financing options available now to companies than in 2007/08. The volume of liquidity in the market place continues to grow, with the number and type of debt providers showing no evidence of slowing, including the recent increase in European funds focusing solely on stressed and distressed assets. 

Financing support

In the last 18 months, we have helped over 300 businesses raise, refinance or restructure £7.1 billion of debt. Key to this success is our debt product and sector focus, and the use of specialist teams to provide commercial insights for management and for other stakeholders.

Read the review for a snapshot of our work over the last 18 months. To discuss any of the assignments profiled in this review, or have a more detailed conversation on current financing trends, please contact Shaun O’Callaghan.

Read about our debt, restructuring and insolvency assignments

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