• 24-OCT-2016

Bankruptcy is a key market mechanism

PwC rated as a Vanguard Leader by ALM Intelligence

According to ALM Intelligence’s report ‘Crisis & Recovery 2016,’ bankruptcy is a key market mechanism that clears underperforming companies from the field, either reorganising them for improved performance or selling them or liquidating operations and assets that are beyond salvation. It is an important mechanism that maintains efficiency in the markets, removing the debris of companies that have fallen victim to internal and external inimical forces.

ALM Intelligence states that:

• Crisis & recovery (C&R) is the last-stage consulting process where it is determined whether or not a company can be saved. It is the triage room where forensic auditors, lawyers, operational experts, economists, and others converge and decide what can and cannot be saved – pushing what can toward turnaround & restructuring, and what cannot toward transaction services or liquidation specialists.

• Traditional C&R services heavily centred on bankruptcy, and the results were more often divestitures and wind-downs than salvation. However, since 2009, as the volume of bankruptcies has subsided considerably, C&R consulting providers have had to reinvent themselves and reach out to debtors before they find themselves in bankruptcy court – at an earlier stage in their financial dramas – when they have more options.

ALM highlights that “PwC has some of the most comprehensive C&R services, as it has been investing heavily in recent years in the C&R space, particularly in restructuring. PwC naturally pulls together services from across its advisory, risk, and transactions practices, but the main C&R practice is the Business Recovery Services group housed in the Deals practice.”

The report identifies PwC as ‘best in class’ for its Crisis & Recovery consulting providers capability area.  ALM highlights that “PwC is particularly adept at large-scale, cross-border wind-downs.”

It also says that ‘PwC has a solid footing on the transactional and restructuring side of C&R, and has the largest C&R practice among the Big Four firms. PwC weds global breadth with deep technical expertise in elements such as winding down client units and services. The firm’s administration of the liquidation and wind-down of failed Lehman Brothers’ UK and European business operations after the 2009 crisis is legendary.’

Commenting on achieving the Vanguard rating, John Dwyer, Global Deals leader, said: “We are delighted to be named a leader in this ALM Vanguard.  We offer advisory services to lenders, creditors, companies and individuals in troubled financial situations to help them identify problems, gain cooperation, develop solutions and implement them with ease and precision. Our global network allows us to rapidly deploy cross-border services to wherever our clients are.”

*ALM Intelligence, formerly Kennedy Consulting Research & Advisory. 

1. We help clients do better deals and create value through mergers, acquisitions, disposals and restructuring. We work together with them to help develop the right strategy before the deal, execute their deals seamlessly, identify issues and points of negotiation and value, and implement changes to deliver synergies and improvements after the deal.  To find out more, visit http://www.pwc.com/gx/en/services/advisory/deals.html
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