Turnaround: Who Are the Experts Rescuing Distressed Companies?

As more and more companies are experiencing difficulties due to the uncertain economic situation, the restructuring sector and associated professions (lawyers, court administrators, accountancy firms and turnaround funds) are experiencing a boom, especially since the French Safeguard Act (loi de sauvegarde de 2005), which is designed to facilitate corporate recovery.

Xavier Bailly, Partner at Eight Advisory and President of the French Association for Business Turnaround, highlights the changes to the legal framework since the 2005 Protection Act and, in particular, the reform of October 2021, which “simplifies” discussions between companies and creditors.

“In the wake of this body of legislation, the sector and its professionnals have been structured. Every firm and every fund must have a turnaround specialist,” he advises.

The article also emphasises the various players involved in these crisis situations: Specialist lawyers, auditors and advisory firms such as Eight Advisory, but also court-appointed administrators and interim managers. The latter temporarily take over the management of companies in order to support them in their operational recovery. Turnaround funds also play a decisive role by providing capital and expertise to companies with restructuring potential.

Finally, professional organisations such as the French Association for Business Turnaroundhelp to structure the restructuring ecosystem.

“One of the association’s roles is to deliver training and uphold rigorous standards, alerting business stakeholders and the academic community to warning signs and the establishment of preventive measures. After all, avoiding liquidation proceedings is in everyone’s interest,” says Xavier Bailly

Read the full version of this article from Mallory Lalanne published in  Les Echos Entrepreneurs  on 24 April 24 2025 (available in French).