Contrary to current trends of staff cuts, redundancies and early retirement in a bid to cut expenses, the Big Five firm has said ‘cutting overheads and delaying payments will not be sufficient on their own to survive this downturn’.
In a six-point plan, the recovery practice at PwC sets out what it deems to be crucial advice to businesses to survive the downturn.
Mark Palios, head of business regeneration, said: ‘The current downturn is different from recent recessions which were dominated by single stakeholders, in particular clearing banks.
‘Management need to be alive to the differing demands of new debt providers and focus on the imperative of proactively managing stakeholders, to create breathing space with creditors, and taking decisive action which will instil much needed confidence.’
PwC is urging directors to ensure stakeholders stay in control; look for quick wins within your control; employ under-used assets; justify the business; simplify the business and enlist advice.
The tips come on the back of this month’s Department of Trade and Industry quarterly insolvency figures showing an increase in the second quarter of 9.3% on the same period a year ago.
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