Have you ever wondered what lies behind the term restructuring consulting? In this article, we’ll give you an overview of what restructuring consulting is, why it plays a critical role in today’s consulting world, and how it helps companies navigate challenges.
We’ll walk you through the core principles, the impact restructuring consultants can have on shaping a company's future and the top firms. Let's go!
Restructuring consulting is a specialized area within business consultancy that focuses on the realignment and restoration of companies facing challenging economic situations.
When companies face financial problems, operational issues, or internal challenges, restructuring consultants step in to help get the business back on track. They usually start by analyzing the company’s finances, day-to-day operations, and organizational structure to understand what’s going wrong and how to fix it.
By applying strategies such as cost reduction measures, debt restructuring, and other tailored interventions, restructuring consultants aim to enhance the overall capability and resilience of the business. This specialized field operates within the framework of the Capability Maturity Model, ensuring a systematic approach to addressing the challenges companies may encounter during the restructuring process.
As a restructuring consultant, your task is to analyze companies, identify problem areas, and propose actionable solutions. You collaborate closely with the management team to comprehend the company's current situation and gain a clear understanding of the necessary changes. This can encompass debt restructuring, adjustments to business models, improvements in operational processes, and realignment of the business strategy.
The support of an restructuring consultant can make the difference between a company's decline and its recovery. Here's why restructuring consulting plays such a critical role:
Financial Recovery:
Restructuring consulting is essential for businesses facing financial challenges. It provides strategies to manage debt, optimize finances, and restructure financial obligations, helping companies regain financial stability.
Operational Efficiency:
By identifying and eliminating inefficiencies, restructuring consulting enhances operational processes, reduces costs, and maintains or improves product/service quality.
Adaptation to Change:
It enables companies to adapt to evolving market conditions, seize new opportunities, and stay competitive.
Long-Term Sustainability:
Restructuring consulting not only solves short-term problems, it also helps build a culture of continuous improvement and sustainable strategies.
Objective Expertise:
External consultants offer unbiased perspectives and specialized knowledge, leading to innovative solutions and improved decision-making.
Job Preservation:
Successful restructuring measures protect jobs, stabilize the workforce, and contribute to economic stability.
In essence, restructuring consulting helps businesses overcome challenges, regain stability, and prepare for long-term success in a fast-changing market.
Restructuring consulting offers a wide range of benefits, making it a valuable resource for companies facing challenges or looking to seize new opportunities.
Restoring Financial Stability:
During times of financial challenges, restructuring consulting helps companies get back on track by reorganizing debt, improving financing strategies, and stabilizing cash flow. This support is crucial for restoring a solid financial foundation.
Effective Cost Reduction:
Restructuring consulting identifies and optimizes inefficient operational processes, leading to sustainable cost reductions. This cost-saving initiative allows the company to trim operational expenses over the long term without compromising product or service quality.
Adaptation to Market Changes:
In today’s fast-changing business world, adaptability is key. Restructuring consulting gives companies the flexibility they need to respond to market shifts, take advantage of new opportunities, and strengthen their competitive position. This might mean launching new products, entering new markets, or reworking distribution strategies to stay ahead.
Long-Term Development:
Beyond immediate challenges, restructuring Consulting contributes to a company's long-term growth. Consultants bring a fresh, unbiased perspective that can reveal new solutions internal teams may have missed and help build a culture of ongoing improvement and innovation.
Job Preservation:
Successful restructuring measures can safeguard jobs by shielding the company from insolvency. This not only stabilizes the workforce but also enhances the company's economic health and sustainability.
Essentially, restructuring consulting is a strategic partner that helps with more than just short-term problems. It helps set companies up for long-term growth and resilience. With the right support, businesses can weather tough times, seize new opportunities, and stay strong in a constantly changing market.
Across the globe, there are numerous consulting firms specializing in restructuring and turnaround management. They differ in their areas of focus, industry expertise, and methods. Below, we introduce some of the most renowned and respected players in this field:
FTI-Andersch
FTI-Andersch is part of the globally active FTI Consulting Group and is one of the leading restructuring consultancies in the German-speaking region. The firm supports both mid-sized companies and large corporations in navigating financial and strategic challenges, ranging from liquidity planning to comprehensive restructuring programs. Its combination of local expertise and access to a global network makes FTI-Andersch particularly effective in managing complex projects.
👉 Learn more about the FTI Consulting Group in our FTI Interview Guide.
Struktur Management Partner (SMP)
Struktur Management Partner is an independent German restructuring consultancy specializing in mid-sized companies. For over 40 years, SMP has supported businesses in special situations, placing a strong emphasis on practical implementation and the long-term effectiveness of its strategies. The firm is known for its hands-on approach and close collaboration with company management.
RSM Ebner Stolz
RSM Ebner Stolz is part of the international RSM network and combines audit, tax, and consulting services. In the area of restructuring, the firm focuses on financial analysis, integrated planning, and the development of turnaround concepts. Mid-sized companies in particular value the close client support and the blend of technical expertise with a hands-on mentality.
Roland Berger
Roland Berger is one of Europe’s leading strategy consultancies with a global presence. Its Restructuring and Performance Management team supports companies through major transformations, ranging from reorganizations to strategic realignments. The firm has a particularly strong footprint among European mid-sized businesses and industrial companies.
👉 Learn more in our Roland Berger Interview Guide.
Alvarez & Marsal
Alvarez & Marsal (A&M) is a globally active consulting firm specializing in restructuring and transformation, with a strong focus on execution. A&M is particularly known for its operational approach and direct involvement in management through interim roles. Projects are often fast-paced, intensive, and centered on delivering measurable results – making the firm an ideal environment for hands-on, action-oriented professionals.
AlixPartners
AlixPartners is an international management consulting firm specializing in restructuring, with a clear focus on fast, results-driven solutions. The firm is particularly well known for its ability to act decisively under pressure in crisis situations and supports companies around the world in transformation and restructuring efforts.
EY-Parthenon
EY-Parthenon is the strategy consulting arm of Ernst & Young, combining deep industry expertise with strong analytical capabilities. In the field of turnaround and restructuring, EY-Parthenon supports companies facing financial and operational challenges, such as business model redesign, performance improvement, or strategic portfolio assessments. Its strength lies in the seamless integration of strategic thinking and execution within the global EY network.
Strategy&
Strategy& is the strategy consulting practice of PwC, blending traditional top-management consulting with hands-on implementation. In restructuring projects, Strategy& helps companies navigate critical phases of transformation: from in-depth analysis and reorganization to the strategic repositioning of business units. Its global reach and deep industry insight make Strategy& a strong partner for complex restructuring initiatives.
👉 Find out more about this firm in our Strategy& Interview Guide.
Restructuring consulting is an important and evolving field that helps companies overcome financial and operational challenges. It focuses on realigning and strengthening businesses to ensure long-term success.
Restructuring consultants take a close look at businesses to uncover areas for improvement and develop customized solutions. These might include debt restructuring, streamlining operations, and adjusting strategic priorities to help companies get back on track.
Restructuring consulting has a wide-reaching impact. It helps stabilize finances, improve operations, increase adaptability, and support long-term growth. By offering an objective outside perspective, it also helps protect jobs. The process usually follows clear steps, from detailed analysis and strategy development to hands-on implementation and continuous monitoring.
In short, restructuring consulting acts as a true strategic partner. It guides companies through tough times, helps them seize new opportunities, and builds the resilience they need to thrive long term. It's not just about crisis management, it's about shaping a stronger, more successful future in an increasingly competitive business world.
