This is the fourth year that the IFT has commissioned a survey of its members to quantify the value of turnaround and transformation. This year’s report estimates that accredited turnaround professionals saved an estimated 55,000 jobs in 2022-23, helping UK companies to add £2.6 billion in shareholder value.
Demand for turnaround management services continues to grow among The IFT’s membership. Over 90 per cent are busier in 2023 than in 2022, and over 95 per cent expect more turnaround activity in the next 12 months than in the last.
The retail sector saw the largest increase in distressed companies in the last year and was the third most common sector seeking turnaround support. The manufacturing and construction sectors were the top two sectors providing work for turnaround professionals, both of which saw an increase in distressed companies over the period. Turnaround experts expect these three sectors to lead demand for turnaround over the next 12 months.
IFT professionals reported that over half (54 per cent) of companies they are called in to assist are simply unaware that they are in trouble until it is too late. This year’s survey showed continued strong resistance among distressed companies to turnaround support. Over three quarters (77 per cent) of IFT members reported cultural resistance to external advice as the most common reason that companies didn’t seek support.
Against this, while turnaround projects typically require an adviser to focus on short-term survival, some 60 per cent of them have involved a full business transformation process in the last year, reflecting the IFT’s focus to “adapt, transform and succeed.”
This year we have focused on challenges in specific sectors and the approach needed to help companies adapt, transform and succeed in the context of the UK’s productivity challenge. The report also draws attention to the welcome greater use of restructuring plans, aligning with our messaging in this area. A link to the full report can be found below.