What counts as Restructuring IB?

Based on the most helpful WSO content, the types of deals you mentioned—Assignment for the Benefit of the Creditors (ABCs), Turnarounds, and Managed Wind-downs—are indeed part of the broader restructuring (RX) landscape. Here’s a detailed breakdown:

Types of Deals in Restructuring IB:

1. Assignment for the Benefit of the Creditors (ABCs):

   • This is a type of out-of-court restructuring where a company assigns its assets to a trustee or assignee, who then liquidates the assets to pay off creditors. It’s a streamlined alternative to bankruptcy and is considered part of the restructuring process.

2. Turnarounds:

   • Turnarounds involve strategies to revive a financially distressed company. This can include operational improvements, financial restructuring, and strategic changes. Turnarounds are a core component of restructuring as they aim to restore the company to profitability.

3. Managed Wind-downs:

   • Managed wind-downs involve the orderly liquidation of a company’s assets to maximize value for creditors and stakeholders. This process is also a key aspect of restructuring, especially when a company cannot be saved through turnaround efforts.

Leveraging Experience for RX Recruiting:

• Relevance: The experience you’re gaining in these areas is highly relevant to RX recruiting. Restructuring bankers deal with a variety of situations, including distressed sales, capital raisings, and advisory roles in both in-court and out-of-court restructurings.
• Skill Transfer: The skills you develop in managing ABCs, turnarounds, and wind-downs—such as financial analysis, strategic planning, and stakeholder management—are directly applicable to RX roles.
• Understanding Dynamics: Demonstrating your understanding of the general dynamics of restructuring, including what RX bankers do and the types of deals they handle, will be beneficial in your RX recruiting efforts.

What Counts as RX:

• In-Court Restructurings: This includes Chapter 11 processes, cram downs, and DIP loans.
• Out-of-Court Restructurings: Broadly includes ABCs, turnarounds, managed wind-downs, and other strategies to avoid formal bankruptcy.
• Advisory Roles: RX bankers often advise on distressed M&A, capital raisings, and other financial strategies to stabilize or liquidate companies.

In summary, your current experience is very much within the realm of restructuring investment banking and will be valuable for RX recruiting. Understanding and articulating the relevance of your work in these areas will help you leverage this experience effectively.

Sources: Restructuring technicals and their difficulty, Pros & Cons Summary - Post-MBAs in Restructuring (RX) - any regrets?, Wharton kids favor restructuring/distressed investing?, Top Restructuring Groups 2019 & Restructuring Questions, Why You Should Consider Restructuring – Common Misconceptions/Insight on RX Groups