Investigation of Companies Under Financial Stress

At Principle Insolvency, we know how difficult it can be when you feel that your business is in trouble. When a business is in this position, they have more than likely been fighting to keep their heads above water for quite some time. It is normal for a business to see fluctuations in performance, but when there are signs of financial distress, you know it’s time to call on Principle Insolvency to conduct an investigation of the company that is under stress to determine what the right solution for the company might be.

Common Signs of Insolvency

When you call on Principle Insolvency to conduct an investigation into your company because of financial stress, our team of specialists have the extensive experience needed to scrutinize a company as we look for risks and issues that are present. When a company is facing insolvency, there are usually some signs that are concerning.
– Lower Performance: While some fluctuations might be normal for businesses, when the company shows signs of performance decline at a steady pace, it is cause for concern. We will look closely at sales growth, profit margins, and customer satisfaction score that can give us a lot of information about where a business is at.
– Employee Interviews: We can tell a lot about the state of a company just by the employee morale. When employees are sensing trouble, there is a feeling of instability and uncertainty that can leave employees overall dissatisfied. This can be telling in our investigation.
– Business Reputation: As a business starts to struggle, they often have a difficult time keeping up with things like vendor payments, customer service and experience product quality issues. This can tarnish their reputation. For our specialists, this can be a big sign that a company is in financial distress.
– Cash Flow Crisis: If there isn’t enough cash coming in to over the expenditures that are going out, there is certainly cause for concern. This can leave a company in debt and and often in enough trouble that they struggle to pay their employees.

Early Intervention is Crucial

Enlisting the help of Principle Insolvency to identify issues with your company is the best way to get to the bottom of your financial troubles. It is crucial that early intervention is incorporated to prevent your company from continuing on this steady decline. We know how important early intervention is and will follow these steps to help get your company back on track:
– Analyze your business & perform a thorough assessment
– Work to create a realistic & well-defined turnaround plan
– Strengthen leadership & management
– Work to boost employee morale
– Rebuild customer’s trust in the company