15 May 2020: As we enter the first week under new government guidance and the eighth week since the beginning of lockdown, I think it is fair to say that many of us are facing one of the most challenging periods we can remember both personally and professionally.
We are receiving a daily death toll relating to the virus via the daily briefings (which is about the least normal thing I can ever remember) along with stories of the dire economic impact of the crisis. As one correspondent mentioned on the news the other night, there are currently two crises faced by the government, one health and one economic but both undeniably intertwined.
As insolvency practitioners it is often considered that economic downturns are something of a boon to our industry and that insolvency firms might be watching current events unfold like vultures circling prey. However, as trading conditions following the 2008 economic downturn testify, such difficult times are good for no one, including our industry.
Therefore, if not simply waiting to line our own pockets, what services are there that we can offer in such difficult times? As many BRI publications will have stated in the past, we represent a critical friend with experience of dealing with companies in distress and can offer sound advice to directors facing challenging circumstances. This puts us in a unique position at this current moment.
A recent example demonstrating the use of our experience and expertise came in the form of a business who approached us in March this year regarding the financial viability of their business. After reviewing budgets and cash flows we were able to assist them in putting together a plan for restructuring their business which better prepared them for seeing through this current period.
Simply put; we do not want this situation any more than anyone else but we may be better placed than most to assist companies in putting in place plans to see them through the financial challenges brought about by the pandemic. Therefore, if we can assist you or your clients during these difficult we would very much like to provide such guidance. Hopefully, by relieving people of their wealth concerns this will also assist in reducing stress and help with their mental health and general wellbeing.