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CERTAIN MOVES IN AN UNCERTAIN WORLD: Insights from the AlixPartners 18th Annual Turnaround and Transformation Survey Asia Report 2023
HOW TO
RESPOND
Leaders must orient their businesses toward a set of characteristics best suited for continued
ambiguity and tightening financial constraints:
Focus on cash
Underpin any new money need with cash
flow analysis of operations under various
risk scenarios.
Understand scenarios and related risks
Balance best-case scenarios with a worst-case
one to help you act fast as trading
conditions change.
Drive agility on cost
Map the underlying cost structures of vendors
and proactively track commodity rates - and
act quickly when market dynamics shift.
Chart a path for change
Balance short-term challenges against your
vision of a long-term upward trajectory, and take
steps towards that goal now.
JOFF
MITCHELL
Global Co-Head, Turnaround
& Restructuring Services"
"
Prudent management teams - many of whom
will be experiencing their first downturn - now
need to build a global view of market activity,
considering both the financial and geopolitical
risks driven by international conflict and rising
tensions between nations. They must then
overlay the continued high interest rate and
constrained credit environment to try and
chart a course forward.
LIAN HOON
LIM
Partner & Managing
Director, Hong Kong "
"
Although the Asian restructuring market has
continued to be somewhat quiet (outside of
China's property sector), we expect activity to
accelerate into 2024 as rising interest rates
put more stress on corporate balance sheets.
MATT
HINDS
Partner & Managing
Director, Singapore"
"
The years of easy refinancings are over. While
the markets remain strong and open, we expect
to see an increase in restructurings across
Asia for less profitable companies facing
higher financing costs.
MIKE
HAFTL
Partner, Singapore"
"
Now is the time for corporates to take
aggressive action on their business models
and cash flow. The refinancing markets are
not expected to get any easier and economic
headwinds will likely continue to loom.