Restructuring industry leaders are focusing on strengthening professional networks as market conditions tighten. Sandy Prabhakar, the 2026 president of the TMA Chicago/Midwest chapter and Managing Director at Armory Group, recently discussed these trends and his vision for the organization in an appearance on the TMA Chicago/Midwest Podcast hosted by Paul Musser, a partner at Katten.
Building Connections in a Challenging Market
Prabhakar, who has over 20 years of experience in mergers and acquisitions, refinancings, and restructurings, highlighted the importance of building strong referral networks within the restructuring industry. His focus for the year, encapsulated in the chapter theme “Pipeline to Prosperity,” centers on helping members understand the interconnectedness of professions in the field and strategically cultivate relationships. He emphasized that, at a certain level, business relies on trust and familiarity.
Prabhakar advised professionals to actively engage with the TMA, emphasizing the value of maintaining connections with classmates, former colleagues, and even junior team members, as these relationships can become valuable referral sources over time. He began his involvement with the TMA in 2005 and has progressed to leadership roles, including treasurer, before becoming chapter president.
Market Headwinds and Opportunities
The discussion also addressed current market conditions. Prabhakar and Musser noted that tighter credit standards over the past 18 to 24 months are making refinancing and distressed transactions more difficult. Tariff uncertainties are adding complexity to deals, particularly for manufacturers with global supply chains.
Despite these challenges, opportunities for consolidation are emerging in sectors like food and beverage, commercial transportation, and automotive supply chains, where companies are facing overcapacity and changing consumer demand.
Looking ahead, Prabhakar anticipates a potential increase in bankruptcies across multiple sectors if market stability doesn’t return and inflation, particularly in essential areas like food, housing, and rent, doesn’t ease. Both Prabhakar and Musser anticipate a busy year for restructuring professionals as lenders and special assets teams navigate an increasingly complex environment.
Frequently Asked Questions
What is the TMA Chicago/Midwest chapter’s theme for 2026?
The chapter’s theme for 2026 is “Pipeline to Prosperity,” reflecting a focus on boosting member engagement and helping them understand the industry’s referral ecosystem.
What challenges are currently impacting the restructuring market?
Tighter credit standards and tariff uncertainties are making refinancing and distressed transactions more challenging, according to Sandy Prabhakar and Paul Musser.
What sectors might see consolidation opportunities?
Sectors such as food and beverage, commercial transportation, and automotive supply chains are facing headwinds that could lead to consolidation opportunities.
As the economic landscape evolves, how important do you think professional networks will be in navigating future challenges and opportunities?
