The bad news is they live in denial, refusing to deal with problems as they arise.
Of the 400 FDs surveyed by BDO, more than 30 per cent said if their company was experiencing financial difficulties, they would continue as normal in the hope that things would improve.
In other words, they wouldn’t seek advice on how to fix the situation.
In a sign of the times, the survey also found 34 per cent of FDs don’t feel comfortable that their company has sufficient access to capital and fresh sources of finance. This may indicate more FDs are going to find themselves at the helm of a company in financial strife.
BDO business restructing partner Mike Prangley said: “Some corporates are showing signs of reluctance to accept there are problems.
“This is definitely a cause for concern and suggests that some management teams have got their heads in the sand, especially with uncertain times ahead.”
Share this story