As the COVID-19 situation increasingly impacts Australians, a growing number of businesses may need the support of trusted insolvency and business restructuring specialists. That may mean it’s time to make sure your business is ready to take on new work, in an unprecedented business environment.
In an uncertain business environment, the skills of qualified insolvency specialists are set to be increasingly in demand.
Recent Macquarie Bank insolvency industry benchmarking research found demand for insolvency and business restructuring services was rising before the COVID-19 crisis hit, with two in three firms saying their business outlook was positive.1 And while the final fallout from COVID-19 is still hard to gauge, it’s clear that the impact on corporate Australia will likely be significant, with thousands of businesses closing their doors,2 and Federal Treasury forecasting that at least 1.7m people will soon be reliant on the newly introduced Coronavirus Supplement.3
Although the government’s proposed changes to insolvency laws may bring welcome relief to some struggling businesses, it’s also possible they may simply delay the outcome. According to Terry van der Velde, Managing Director of SV Partners, “where you may have seen a tsunami almost immediately, I think you’re now going to find it’s two to three months down the track.”
So, what could you be doing now to prepare your business for the opportunities and challenges that lie ahead?