Restructuring in Europe 2008

2008

Roland Berger fourth study on restructuring: Less than 20% of European companies are worried about consequences from the subprime crisis – more than 75% expect to see a need for restructuring in the medium term

European corporate executives think the consequences of the subprime crisis for their own companies are less severe than for the economy at large. That was one of the results of a recent study by Roland Berger Strategy Consultants. The study surveyed board members and managing directors of more than 2,000 companies in Western (WE) and in Central and Eastern Europe (CEE). Of those surveyed, only 17% in WE and 12% in CEE expect a strong impact on their own companies, while 34% (WE) and 24% (CEE) consider the subprime crisis a major problem for their domestic economy. However, the majority of companies in the study are expecting lending terms to get worse and economic growth to slow down. The most important topics for the future are strategic issues such as growth both in foreign and domestic markets, and further cost reductions. 81% of WE and 76% of CEE companies said that they expect to see a need for restructuring in the next two to three years.