Let’s learn from the case of Carillion
Let’s learn from the case of Carillion. Get the right help early and make your business a success.
The collapse of British outsourcing business, Carillion, is still ringing in our ears and the repercussions are having a depressing and devastating impact on many involved. Yet a piece of research published by the Institute of Chartered Accountants for England and Wales last September revealed that most British business owners feel ashamed discussing their companies’ problems. This prevents them seeking help from the right sources and before you know it, could lead to an insolvency. One of the main issues is that they don’t know who to turn to when they are in difficulty or they don’t shout early enough.
Yet if the focus for those businesses was to look at refinancing or restructuring, most of them could avoid insolvency. The issue is all the more important given the challenging trading conditions we continue to face with economic uncertainty over Brexit ever present and looming interest rate rises. Many industry insiders feel this could lead to a rise in insolvencies.
However, if the right advisers are brought in to help businesses, to look at their Bank facilities and offer advice and assistance shopping around or to review divisional performance and restructure them, business difficulties can be dealt with in a less drastic fashion than insolvency.
Industry expertise can help with all the relevant conversations, not only the Banks, but HMRC, creditors, suppliers, staff and can partly mitigate the impact of trading difficulties. Analysing cash flow and working capital to make changes for the better can significantly boost businesses in a short time frame and is all part of parcel of restructuring work.