The document discusses the turnaround industry in South Africa and the need for certification of turnaround professionals. It outlines the structure of the turnaround industry, the key driving forces behind its growth including new business rescue legislation, and constraints such as a lack of education and experience. It argues that certification is urgently needed to establish qualifications and regulate practitioners, especially for business rescue practitioners required under the new legislation.

1. Jan van der Walt (Director: Certification) March 2010 The Turnaround Industry in South Africa and the Need for Certification Industry Structure, Driving Forces and Constraints The premier professional community dedicated to corporate renewal and turnaround management

4. Developments in the SA turnaround industry cover a number of areas Underperforming & distressed businesses and government structures Industry constraints The market for turnaround TURNAROUND INDUSTRY STRUCTURE Industry participants SA Turnaround Industry Industry driving forces

5. The turnaround industry consists of turnaround professionals of various disciplines Under-performing & distressed businesses and government structures Stakeholders: Industry participants formed TMA - Southern Africa in 2005. TURNAROUND INDUSTRY STRUCTURE Management Organisational Stakeholders Employees Shareholders Capital Market Stakeholders Banks Unions Suppliers Customers Government Host communities Product/Market Stakeholders Industry Association Turnaround Management Association – Southern Africa Industry Participants Lenders - Banks, Development Fund Institutions (IDC, DBSA) Financiers Investors - institutional investors, DFIs, private equity, venture capital Turnaround practitioners Service providers Turnaround consultants Accountants Attorneys Legislators Government SARS Legislation Faculty/Academic Research Financial advisors dti

10. Business confidence is decreasing (1) DRIVING FORCES - ECONOMIC

11. Business confidence is decreasing (2) DRIVING FORCES - ECONOMIC

12. Interest rates increased to curb inflation, but recently decreased to stimulate the economy DRIVING FORCES - ECONOMIC 5% -4,5%

13. Monthly and annual liquidations, however, are on the rise DRIVING FORCES - ECONOMIC

18. Business Rescue Process and Resolution: