More than 30% of the nation’s finance directors (FDs) would avoid seeking advice if their company was experiencing financial difficulties, a new survey has claimed.
Instead, many would simply continue as normal in the hope that things would get better, said the latest management survey from business advisers BDO Stoy Hayward.
However, nearly 20% of the FDs who took part in the survey said they knew who they would turn to if their company was in financial trouble.
Worryingly, the report also found that 34% of FDs didn’t feel that their company had sufficient access to capital or new sources of finance.
“This reluctance to accept there are problems is definitely a cause for concern,” said Mike Prangley, BDO Stoy Hayward’s business restructuring partner. “It suggests that some management teams have got their head in the sand, especially with uncertain times ahead.
“With the tightening of the financial markets, it is not surprising that senior management are feeling anxious that they don’t have sufficient access to capital and new sources of finance.”
He added: “The findings show a severe change of mindset is needed. Confidence has been riding high in the financial markets but with the recent credit crunch still not fully played out, it is apparent that defence strategies, increased awareness and an understanding of turnaround services are required.
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