Corporate Restructuring Advisory Market is Expected to Reach a US$ 44.5 billion by 2033
The global corporate restructuring advisory market is projected to reach a valuation of USD 24.1 billion in 2023. From 2023 to 2033, the market is expected to grow at a compound annual growth rate (CAGR) of 6.3%, reaching approximately USD 44.5 billion by the end of 2033.
Over the past three years, the corporate sector has faced significant disruptions due to external factors such as the COVID-19 pandemic and geopolitical conflicts. These challenges have considerably impacted company performance, necessitating large-scale restructuring to maintain business continuity. As a result, the demand for corporate restructuring services has surged and is expected to remain elevated over the next two to three years.
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Corporate restructuring consists of many business activities where a company requires outside or professional commentary. Some of the major reasons for corporate restructuring are financial distress, business expansion, hierarchy of management changes, and legal compliance.
Depending on the reason for restructuring, we can decide whether the particular business restructuring is positive or negative from a business point of view. For example, if the business restructuring is happening due to financial distress, it is a negative sign for the business or an investor. However, if the restructuring is happening due to legal compliance or business expansion, it is considered to be a normal course of action.
Key Takeaways from Market Study
- The global corporate restructuring advisory market is projected to expand at a CAGR of 6.3% and reach US$ 44.5 billion by 2033.
- Demand for corporate restructuring advisory services in East Asia is expected to increase at a CAGR of 6.8%.
- The market expanded at 5.6% CAGR during the period of 2018 to 2022.
- Under service type, financial restructuring services dominate the market and are valued at US$ 7.9 billion in 2022.
- North America leads the global market with 41% share in 2022.
Segment Analysis
The study reveals essential insights on the basis of type (Turnaround — Crisis Management, Liquidity Management CRO Services, Managed Exit, Third Party Credit Risk, Working Cap Management), Financial Restructuring — Lead Financial Restructuring Advisor, Contingency Planning, Distressed M&A Planning, Restructuring Tax & Legal), Distressed Debt & Capital Advisory — Distressed Debt Advisory, Rescue Capital Advisory, Valuations & Modelling, Portfolio Lead Advisory Services), Restructuring Implementation — Insolvency, Bankruptcy Support, Distressed M&A, Forensic Investigation), End-Use Industry (Consumer Markets, Energy and Natural Resources, BFSI, Life Science & Healthcare, Media & Telecommunications, Technology, Others (Not Covered Elsewhere)), across major regions of the world (North America, Latin America, Europe, East Asia, South Asia & Oceania, and the Middle East & Africa).
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Key corporate restructuring market players are Armanino LLP, Baker Tilly US, LLP, Binder Dijker Otte, Crowe Global, Deloitte Touche Tohmatsu Limited, Ernst & Young Global Limited, Evelyn Partners, Grant Thornton LLP, Haines Watts Group, Johnston Carmichael, Kearney & Company, KPMG International, Mazars, MHA MacIntyre, Hudson Moore Global, PwC, RSM US LLP, and UHY Hacker Young.
Market Development
The next few years will be quite busy for the corporate restructuring advisory market amid expected slowdown in overall economic growth. Unfavourable business conditions will result in different business transactions, leading to increased revenue for the restructuring advisory market.
Within the corporate restructuring advisory market, the industry has witnessed many small and big mergers and acquisitions. Expanding businesses to different regions has been the priority of market players in the recent past.
- In September 2022, Evelyn Partners completed the acquisition of investment management business of Arena Wealth, a London-based corporate advisory firm.