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Alvarez & Marsal report shows rising corporate distress in Europe and Middle East
The consulting firm Alvarez & Marsal (A&M) has released its latest Distress Alert report, revealing that the proportion of financially distressed companies in Europe and the Middle East has risen to 9.2%. This figure marks an 18.4% increase compared to three years ago and represents the highest level of distress in four years.
According to the analysis of over 15,000 companies, falling profits are the primary driver of this trend, with nearly 15% of businesses reporting weaker performance. Geopolitical instability, particularly in the Middle East, is further straining margins by increasing energy and supply chain costs. While the percentage of companies with vulnerable balance sheets has stabilized at 28%, high financing and operating costs continue to limit recovery prospects.
Germany and France are identified as having the highest concentration of operational difficulties. Volker Gross, Managing Director at A&M Germany, noted that the combination of cost pressures, margin erosion, and weakened demand is driving an increase in corporate insolvencies across the region.
Entities
Alvarez & Marsal · France · Germany · Middle East · Volker Gross
Claims
What the coverage asserts, and how many sources carry each claim.
- [● 3 SOURCES] Geopolitical tensions in the Middle East are increasing energy and supply chain costs. www.mittelstandcafe.de · www.finanzen.net · www.presseportal.de
- [● 3 SOURCES] The 9.2% distress rate represents an 18.4% increase compared to three years ago. www.mittelstandcafe.de · www.finanzen.net · www.presseportal.de
- [● 3 SOURCES] The share of financially distressed companies in Europe and the Middle East has risen to 9.2%. www.mittelstandcafe.de · www.finanzen.net · www.presseportal.de
- [● 3 SOURCES] Falling profits are the primary driver of the increasing corporate crisis. www.mittelstandcafe.de · www.finanzen.net · www.presseportal.de
- [● 3 SOURCES] Germany and France have the highest concentration of business distress. www.mittelstandcafe.de · www.finanzen.net · www.presseportal.de
- [● 3 SOURCES] The proportion of companies with vulnerable balance sheets is 28%. www.mittelstandcafe.de · www.finanzen.net · www.presseportal.de