According to specialists from the Big Four, an increasing volume of their work is coming from companies and banks, which are requesting help for troubled businesses before they become insolvent.
Alan Bloom, head of corporate restructuring at Ernst & Young, said the work was ‘growing considerably’ in the economic slowdown. ‘It is the fastest growing part of our business,’ he added. ‘Companies are becoming more aware that they need advice or they will be in trouble if they leave it too late.’ Bloom added that the banks were encouraging clients to call in the experts early. In some cases, he has appointed external company doctors.
A spokeswoman from PricewaterhouseCoopers confirmed the growing tendency towards turnaround work. She said: ‘The hope is that businesses can be rescued before insolvency becomes necessary.’ James Wheeler, a company doctor at interim management company Ashton Penney, confirmed the increase. ‘A lot of large corporates are doing internal turnaround work behind the scenes. At the current time, we are very busy.’
Steve Absolom and Will Wright from KPMG Restructuring have been appointed joint administrators to City Motor Holdings and associated companies
Partners from Johnston Carmichael have been appointed as joint administrators to Axon Well Interventions Products UK
Begbies Traynor have been appointed administrators of William Anelay Ltd, York, one of Britain’s longest-established construction and heritage restoration companies
Smith & Williamson has been appointed administrators of charity 4Children