The economic hits keep on coming, and businesses are experiencing uncertainty and feeling the pain. Rising operational costs and complexity, skills shortages, geopolitical uncertainties and corporate debt burdens are forcing organisations to rethink their structures and strategies to survive, never mind thrive.
The final quarter of 2024 saw a record increase in UK businesses experiencing severe financial distress.
For CEOs and other C-suite executives, recognising the need for proactive restructuring and choosing the right leadership approach is crucial to maintaining resilience and long-term success in an unpredictable macroeconomic environment.
As businesses grapple with economic volatility, restructuring will remain a key strategy for survival and future growth. While large corporations will continue to rely on global consulting firms, SMEs can benefit from working with interim leaders who provide hands-on expertise and rapid execution. Savannah is experienced in matching organisations with interim consultants who have extensive track records of steering companies through restructuring.
Restructuring Strategies: Large Corporations vs SMEs
Corporate restructuring is becoming a necessity for businesses of all sizes. Large FTSE 100 and large cap private equity portfolio companies often turn to major restructuring consultancies for support on strategy and large-scale implementation of turnaround and restructuring.
For small and medium-sized enterprises (SMEs) who don’t have extensive resources, a practical first step is to bring in experienced interim leaders with relevant track records of turnaround, restructuring and operational optimisation and value creation. Most commonly, we see the deployment of interim CEOs, CFOs, CROs, COOs, or transformation leaders who can help identify and implement business-wide changes with the support of a strong CHRO.
Savannah worked with a FTSE 250 organisation experiencing major change post-Covid, who, like many organisations, continued to struggle with the debt burden carried forward from 2022. Savannah appointed new finance leadership for our client including a CFO and transformation team, as well as a CHRO to be a catalyst for change.
The role of Interim Leadership in Restructuring
Interim executives offer SMEs a flexible and cost-effective solution to guide businesses through restructuring. These leaders bring hands-on experience from similar scenarios, helping businesses pivot swiftly and effectively in uncertain economic conditions.
For SMEs facing financial distress or operational inefficiencies, engaging an interim leader is a decisive step toward stabilising the business and charting a path forward. Whether the challenge is financial restructuring, supply chain optimisation, or strategic repositioning, interim leadership provides the agility needed to navigate today’s economic landscape. We view this as a preventative strike for a business, helping to avoid more severe ramifications if time is lost in getting the right leadership team in place.
Savannah has an extensive track record of supporting businesses in these situations, often highlighting and introducing advisors and interim managers within 48 hours of understanding the need. For more information on how we can help your organisation please contact us.
