The IFT Quarterly Update: continued strong demand for turnaround support as businesses struggle with debt costs

The IFT’s quarterly update looking at turnaround and restructuring activity across sectors shows continued demand for turnaround support at the start of 2024, with 50% of The IFT’s partner firms surveyed seeing an increase in activity in Q1 2024, with the rest seeing about the same level of activity as the end of 2023.  The busiest sectors for turnaround and restructuring activity in the quarter were real estate and construction. The costs of servicing debt was the most common reason IFT partners saw for businesses experiencing distress, overtaking inflationary pressures which had been the most common factor at the end of 2023.

According to data from FRP Advisory, whilst Quarter 1 2024 saw a lower level of insolvencies than the previous quarter, there was a 2.1% increase in the number of businesses experiencing distress compared to Q4 2023. This may indicate businesses increasingly struggling with levels of debt and costs pressures after a number of difficult years, with often a need for turnaround support to help address these issues and maximise improvement.

As we move through 2024 we will have a greater sense of the degree to which businesses are able to utilise such support and avoid insolvency.

The full update can be found here: Quarterly Review Q1 2024 FINAL

With thanks to FRP Advisory and our partners who contributed to this update.