Restucturing and Insolvency: Ireland's leading practitioners give their insights on the current trends and analyse the business outlook.

At RSM Ireland, there is a growing shift from traditional insolvency work to proactive, tailored advisory solutions that focus on making businesses future-fit, according to Paddy O’Connell, restructuring partner at the firm.

“Historically, restructuring assignments focused on formal insolvency, especially in distressed industries such as retail, hospitality and construction,” he says.

“But more recently, we’re engaging with businesses experiencing early signs of stress, allowing for pre-emptive planning and risk mitigation before a crisis emerges.”

This shift reflects a broader change in mindset.

Businesses are seeking support before insolvency becomes inevitable, exploring options such as schemes of arrangement, the Small Company Administrative Rescue Process (Scarp) and examinership.

“Despite its limitation, Scarp has introduced a new layer of flexibility into Ireland’s restructuring landscape.

“Even when not used directly, its presence is shaping more constructive creditor engagement and broadening the toolkit available to struggling businesses,” O’Connell says.

“There is also rising demand for informal restructuring to manage cashflow pressures, legacy liabilities and expensive finance arrangements.”

At the same time, RSM’s restructuring team is increasingly advising on complex group corporate simplification, helping businesses streamline operations and remove dormant entities, with careful attention to financial, legal and tax considerations.

“In today’s unpredictable market, shaped by tariffs, inflation and global uncertainty, many companies are vulnerable to supply chain disruptions and shifting macroeconomic forces.

“We are supporting clients and stakeholders through early risk identification, strategic financial assessments and ongoing business monitoring,” O’Connell says.

“Looking ahead, as economic pressures persist, the demand for agile, forward-looking restructuring solutions will only grow.

“At RSM, we’re committed to helping clients move from stress to stability, supporting smarter decision-making, stronger operations and long-term resilience.”

Restructuring is not just about surviving current pressures; it’s also an opportunity to reposition the business for future growth, he says.

“When embarking on a restructuring journey, directors must adopt a proactive, strategic approach — one that is open to expert advice and willing to challenge and reset existing business models.

“A critical foundation of any restructuring process is a well-resourced and responsive finance function.”

In periods of challenge, O’Connell advises that businesses must have access to accurate, timely financial data and forward-looking projections.

These should factor in a range of external variables, including inflation, interest rates, tariffs and supply chain vulnerabilities, so that directors can make informed decisions in real time.

“Waiting for quarterly or year-end results is no longer viable.

“In today’s volatile environment, where the threat of a prolonged global downturn looms large, real-time financial visibility is essential.

“Without it, even the most promising restructuring strategies may fall short,” O’Connell says.