2021 Global Restructuring Trends

Focus is shifting from survival and stabilize to recovery and growth. While momentum for global economic recovery is gathering overall, the pace looks set to vary between countries and sectors. In economies where the rebound is furthest forward, the business focus is moving from short-term survival to recovery and growth, bringing with it challenges in managing the associated demands on liquidity and working capital. 

Supply chain disruption could hold up recovery and jeopardize some businesses. From steel to semiconductors, supplies of raw materials and finished goods along with the capacity to transport them, are under pressure or seeing a significant rise in prices. Alongside supply chain bottleneck, resurgent demand is adding to shortages of key skills.

Need to keep pace with digital transformation and expectations on ESG and diversity and inclusion. The acceleration in digital transformation in many sectors as a result of the pandemic opens up increased opportunities for innovation and growth on the one side, while making some operations and even whole companies unviable on the other. 

Legislation and innovation are improving the speed, choice and flexibility of restructuring options / solutions. The expected uptick in restructuring is coinciding with the introduction of useful new options and the removal of many of the barriers that have held up proceedings in the past.