Investors must address several key issues at the outset of a restructuring to smooth the path to a successful realisation of their investment.

The classic image of a restructuring situation is of the critically ill patient struggling to survive. All efforts are focussed on right-sizing the balance sheet to save the company from total collapse. However, this over-arching priority can divert attention from the equally important goal of preserving value within the business. Ultimately, the goal of any investor in a distressed situation is to realise a suitable return. In the same way as an investor should plan how to preserve value, they should pay equal attention to planning how to realise that value through a post-restructuring exit. The challenge is to retain the discipline to do so whilst implementing a holistic restructuring under the pressure of a potential insolvency.