Although technically we’re not in a recession, the reality is that the wheels of the economy haven't turned effectively for a while. So-called 'zombie’ firms which were kept going during the pandemic are finding they’ve no real prospect of trading now that the support measures have been exhausted and this will continue to drive up the number of corporate insolvencies.

It’s important to distinguish between zombie firms and those that have a future and are currently battling against very strong economic headwinds. The most resilient businesses are those who have acted quickly to take advice and explore their options. Businesses that continue to bury their heads in the sand until the situation has potentially worsened are significantly less likely to be able to have a favourable outcome.

If a business is considering a restructure, such as raising loan or equity capital, working with creditors to manage cash flow, increasing sales and decreasing costs, there should be a clear focus on the proposed strategy, including detail on how liquidity will be generated and the right degree of transparency for those who are impacted by the proposed plan.

The content and measures in a plan will be dependent on the stage and level of the crisis and the stakeholder structure. It is important to set out the measures and requirements which will need to be met to implement the plan and an analysis on the outcomes, along with the impact on the balance sheet of the business.