Competition in the insolvency market
The insolvency market is small and shrinking, 33,000 corporate insolvencies a year will produce something like 20 to 30 cases for each of those who take corporate appointments. That number of small liquidations is unlikely to make a viable practice. However we face the challenge of retaining experience whilst bringing new blood into the profession as the market shrinks. Successful insolvency practitioners in 2015 will, like Mercer & Hole, be flexible, providing alternatives to insolvency solutions; real experts in some areas, distinguishing themselves from their peers; and efficient, operating profitable practices without excessive costs.
Insolvency practitioners have not chosen an easy profession. It is technically demanding with a high level of fiduciary responsibility. The technicalities are such that many non-professionals who encounter insolvency do not understand what is happening. Especially when creditors are bearing significant unexpected losses, they are not always amenable to professionals being paid out of funds that might otherwise offer them some return. Those however are the facts of an insolvency practitioners’ life. Competition in the profession should ensure that the best will survive.
Date: 23rd February, 2015
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