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All InsightsBanking & Capital Structure

When Should a Company Engage a Financial Restructuring Advisor?

A practical guide to recognizing financial stress early, stabilizing liquidity, preparing for lender discussions, and selecting a restructuring advisor.

Hanu ShinSeptember 21, 20269 min read

A middle-market company should engage a financial restructuring advisor when forecasts show that liquidity, covenant compliance, debt service, or an approaching maturity may become unmanageable under the current plan. The right time is usually before a payment is missed or a covenant is breached. Early engagement gives management time to validate the facts, stabilize cash, compare financing and restructuring paths, and communicate with lenders from a prepared position.

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