The global economy and businesses have faced a heavy decline at the hands of the coronavirus pandemic. The situation has resulted in high rates of unemployment, dipping stock markets, and lowered revenues for most organizations.
However, in this scenario of decline one sector witnesses a hike in demand –that of consultants specializing in distressed assets and restructuring. The specialized services required by the affected companies would be around mergers and acquisitions, restructuring, bankruptcy, etc.
One needs to realize that this is not a new phenomenon. The previous recessions, especially 2008, saw a similar rise in demand for consultants. During these periods, they became a valued intermediary between the shareholders and third-party lenders, as well as a trusted consulting partner for the executives within the company.
At a time of such rapid changes and uncertainty, consultants lend their forecasting skills to assess the situation in the best manner. Turnaround consulting can enable a loss-making organization to book profits, something most businesses are failing to do on their own under these circumstances.
Consultants can also lend their expertise in mediating and advising upon mergers and acquisitions, a very common practice in these tumultuous economic times.
Once the world returns to normalcy, such services will be markers if an organization can make it back to pre-COVID levels or not.