A.T. Kearney launches Restructuring arm in Germany and Central Europe

A.T. Kearney is expanding its service portfolio in continental Europe with the launch of a restructuring and turnaround arm.

“With A.T. Kearney Restructuring, we are expanding our competencies with a network of Chief Restructuring Officers and senior restructuring professionals,” said Martin Eisenhut, Partner and Managing Director of A.T. Kearney Central Europe.

The new business unit will help companies that are facing crisis situations (‘crisis management’) or are in financial distress – companies that no can longer meet or are have difficulty paying off their financial obligations to creditors – with three offerings. First, helping companies stabilise in acute situations; second, supporting them with crafting a roadmap for recovery; and third, with the implementation.

The launch comes on the back of growing demand for restructuring services globally, despite the service being one that is highly synchronised to economic cycles. When the economy is booming and companies are riding high, demand for turnaround typically falls, while in periods of economic pressure, cost focus tends to spiral back up the strategic agenda, and the number of companies that risk falling or fall into administration starts peaking again. However, the rapid rise of digitisation has turned the decade-long equation upside down. Enter digital disruptors, and companies deemed financially healthy not too long ago have come under immense pressure, as they face more digital, agile-savvy and innovative competitors. This has led to a rise in new-age restructuring projects, as noted by a report from management consultancy Roland Berger. The authors found that the trend of digital-led disruption to strategies and operating models is sparking a rise in demand for Restructuring Officers to implement redesigns and manage turnaround situations. 

“We expect more and more crisis management situations, that is why we are expanding our offering into the area,” explained Eisenhut. “On a macroeconomic level, the pillars of global growth have become more shaky. And across the board, productivity growth is lagging behind growth rates, and in our work with companies globally, we are seeing a growing potential for crisis situations.” He explained, “Thanks to our decades of experience as a top player in operations consulting, we can already see which companies today are still performing well, but risk running into a crisis situation in the medium term.”

Asked about how A.T. Kearney will differentiate its offering in a market that is dominated by big players such as the Big Four, AlixPartners, FTI Consuting, Roland Berger, and even the likes of McKinsey and BCG which have more recently ventured into the field, Eisenhut said, “We have deep expertise in cost transformation, operations excellence and digital / IT transformation with a worldwide network of hands-on Chief Restructuring Officers (CROs), other industry experts and industry leaders. Our network also includes dozens of highly skilled and experienced interim executives who have a market-leading track record in strategic turnaround programmes.” 

When on the job, A.T. Kearney’s approach focuses on helping companies “think outside the box” to reap the full benefits of restructuring, while the firm can leverage its strategic capacities in an agile manner to help companies slash costs, and identify opportunities for much-needed new growth.”

Last month German-national Martin Eisenhut welcomed two new partners to A.T. Kearney’s partnership in Germany. Both Christian Malorny and Thomas Luk joined the Automotive practice and previously worked for McKinsey & Company.