Restructuring in M&A boutiques

Salam !

I’m a french student (sorry if my english is not perfect).

I discovered you forum recently and honestly that’s amazing. I’ve read your opinions on working in a BB.
My question is about restructuring ? A lot of M&A boutiques provide restructuring advices. Is it allowed or not ? I don’t really understand what is “Financial restructuring” ? Does it have something to do with debt ?

Thank You !

Assalaamu alaykum,

Financial restructuring is the reorganisation of a business’s assets and liabilities. The process is often associated with corporate restructuring, where an organisation’s overall structure and its processes are revamped. When a company is in crisis it may attempt to renegotiate with its secured and unsecured creditors to reduce or eliminate some of its debts. In some instances the creditors will often work to adjust the terms of the repayment, including lower interest rates and/or extending the repayment schedule. Debts may also be commuted in part, often in exchange for the creditor gaining some equity in return.

Advising and being directly involved in non-compliant restructuring is problematic from a Shariah perspective.

Allah knows best

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Thank you so much !

So it’s not allowed. Fine. I have an other question, if you work in one of those boutiques and you work only in the M&A section (i don’t know if it’s possible to just work in M&A and never touched restructuring) , everything is fine right ? (according to the article that I’ve seen on the web site and the video on YouTube on halal career).

  1. I’m also interested by strategy consulting (Strategy&; OW, MBB…), is it allowed or not ?

Sorry if I ask too much but honestly thank you a lot !

Jazakallah

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Salam aleykom !

Interesting topic ! I am still a student and I’m really interested by M&A but me too I’d like to know, if it’s possible to work only in M&A in a boutique such as Lazard, PJT and many others… and never touched to restructuring which seems to be a problem for us (just be focused on M&A Only).

Jazakallah !

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