10th Jan, 2013
Since 2013 got going properly, with everyone back at work properly by Friday, things have really started to kick off on the insolvency front.We are experiencing a record level of inquiries from Directors who are looking to grab the bull by the horns and deal with the financial problems faced by their companies.
The high level of demand is probably due to a combination of factors:
- the post Christmas hangover, with the turkeys coming home to roost in January!
- the recent downturn in the service sector is hitting small service companies hard
- the continuing trend of directors of researching their options online, shopping around, and seeking best value for money.
The internet is driving down the fees that Insolvency Practitioners can charge, and allowing Directors to deal directly with Insolvency Practitioners, rather than seeking assistance from intermediaries such as accountants or management consultants, who add an additional and usually unnecessary layer of cost to the insolvency process.
This combination of increasing demand for insolvency practitioner's, downward pressure on fees, and a restructuring of distribution channels for insolvency services, is creating a challenging environment for more traditional firms who have high overheads and are struggling to react to this new, dynamic environment.