Once a restructuring candidate has been identified or a restructuring event has been triggered, the restructuring advisor needs to think about possible ways to solve the problem. There are three main routes to be considered to address such situations, business turnarounds, asset disposal, or liquidation.

These three options are typically considered in tandem, and a detailed options analysis is key to identify what's feasible for the company. Remember that once a company is under significant stress, for example, it is running out of the cash necessary to meet its obligations. There's often not enough time to seek the most optimal solution. Usually, whatever is achievable at that point in time is considered the best.

Another important thing to bear in mind is that each stakeholder group might have its preferred option, management and shareholders might prefer a business turnaround as current executives would probably keep their jobs and the shareholders would not lose control of the company. On the other hand, secured creditors might think liquidation is the best route for them to recover as much of their money as possible. Therefore, stakeholder management and negotiation skills are required to achieve an agreement among all parties involved.