The four warning signs of distress

Businesses across APAC are under strain, and many are facing uncertain futures. Failures often result from warning signs that were visible but not addressed early enough. AlixPartners has analyzed data from across APAC and identified four warning signs that every company stakeholder should take action on to build more resilient businesses and prevent avoidable insolvencies.

Executive summary 

The global operating backdrop for businesses remains challenging, as firms tackle persistently high inflation and ongoing macroeconomic headwinds. In APAC’s diverse business ecosystem, these pressures are evident with company insolvencies on the rise. 

At AlixPartners, we know that business failures are not caused by a single event. More often, they result from warning signs that were visible but not addressed early enough. 

We have analyzed data from across APAC to identify the four warning signs of financial distress that require keen attention and shrewd decision-making to maintain resilience:

1. Decreasing access to quality capital
2. Mismatch between EBITDA and cash
3. Missed milestones and targets
4. Senior management churn

The analysis conducted in this report will support organizations across APAC to build stronger, more resilient businesses; encourage positive and proactive interventions, earlier; and prevent avoidable insolvencies and loss of corporate value. 

Read the full report below or download a copy.