There are a number of challenges and opportunities in South Africa for business rescue. Here are some of the Opportunities and challenges.
- Regulation of the industry and accreditation of business rescue practitioners.
- Creation of a distressed fund to make PCF available.
- Education and awareness (specifically of directors)
- Positive marketing of business rescue.
- Needs national championship through Parliament.
- Use of pre-packs.
- Investors buying companies at a discount.
- Build a body of knowledge.
- Innovation and collaboration.
- Joint appointments and transfer of skills.
- Educating business on restructuring opportunities presented through business rescue.
- Lack of regulation of the industry
- Business rescue practitioners lack of skills and experience.
- Lack of availability of PCF.
- Low levels of education and awareness of all stakeholders.
- Negative publicity and no success stories.
- Lack of legal clarity and no specialised courts.
- No judicial oversight, business rescue practitioners have free reign.
- Not using business rescue early enough.
- The credibility of the process.
The above points are taken from the Deloitte Restructuring Outlook Survey 2016.