A race against the clock: an outlook on turnaround and restructuring in Asia Pacific 2016
Times are getting tougher for corporations in Asia Pacific. Yet many companies aren’t making the changes needed for a successful turnaround. Whether it’s because of complacency, inexperience, or denial, their foot-dragging could prove dangerous. Businesses must set the stage for recovery now—before it’s too late.
At a glance
- C-suite executives aren’t necessarily the best equipped to manage the changes needed during a turnaround. And they may not recognize declining conditions in the company or market until it’s too late.
- Chief restructuring officers will likely have the most influence on the restructuring process for Asia Pacific companies.
- Operational restructuring could be more valuable than debt/capital restructuring—by enabling companies to emerge reinvigorated from the turnaround process, and ready for rapid growth.
- As part of their restructuring strategies, many Asia Pacific companies will complete M&A deals, improve cash flow forecasting, scale back production, and explore new market segments.
- Across Asia Pacific, companies will undergo restructuring to varying degrees, depending on factors such as domestic growth rates and large corporations’ debt levels.