How restructuring firms are staffing up to handle wave of mandates - Business Insider

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Restructuring revenues could double at top advisory banks, and firms are reassigning junior bankers and pulling in industry specialists to handle the crush of work

But even comparatively healthy companies have been seeking help managing liquidity amid the unprecedented business shutdowns across the world.

To be sure, boutiques have also grown more nimble in recent years, as they built up practices that straddle the line between restructuring and M&A. "We've taken a bunch of our younger bankers — and this is a double digit number, not a single digit number — and added them to the restructuring group, just to have extra analytical capabilities and arms and legs to do all the work that we're being asked to do at this point," Schlosstein said.

With economic pain cutting across all sectors, more senior bankers will be getting a crash course in restructuring, and trial-by-fire is part of Moelis' strategy for building capacity. "Tom Brady is a great quarterback, but you're not going to have him go pitch for the New York Yankees," he added. "It's not going to be a quick blip. The challenges that companies are going to feel — it's going to be years before we're totally clean," Kramer said. "It means a whole lot of work for us. It means a whole lot of challenges for the country."In some ways, the bright line separating restructuring and strategic advisory has dimmed since the last downturn as advisory shops have expanded.

 

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