Advisers have been warned to start fixing any problems in their companies now to ensure they do not become a victim of insolvency in 2009.
According to restructuring specialists, the number of UK insolvencies will soar by 55% towards the end of the year; more than double the number before the credit crunch.
However a new report published by business intelligence analysts Plimsoll Publishing suggests many of the 124 UK IFA companies rated as being at 'high risk of failure' can be saved if they start fixing their problems now.
David Pattison, senior business analyst at Plimsoll, says IFAs need to understand the extent of the problems their firms may face.
"A critical factor in this cycle is to understand the key measures to monitor in your business in order to pinpoint any decline," he claims.
Pattison says IFAs currently under severe financial pressure have three options if they want to survive and be well-placed when the market picks up. These include cutting costs now, selling the company or looking for an investor and trading their way out of trouble.
Pattison says in the current economic climate the latter option is the least likely strategy and warns only a few companies will have this as a viable route.
Plimsoll's latest analysis is designed to help companies understand their options in the changing marketplace. Each of the UK's leading 1000 IFA firms are named, analysed and valued. Copies are available for £350 by calling Clair Sherwood on 01642 626400 or emailing [email protected]
To comment, contact Charlotte Banks on 0207 484 9943 or email: [email protected]
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