Acquisitions that go wrong are a top cause of business insolvency, according to research from Purbeck Personal Guarantee Insurance.
Not being close to business financials due to an over-reliance on accountants, and bad debts or payment disputes, are also key reasons why businesses collapse, the study found.
Read more: One in 10 businesses at risk of insolvency as pandemic hits turnover and cash reserves
Purbeck analysed claims from business directors for personal guarantee insurance following insolvency and found firms window dressing their business to make it appear more secure than it actually is prior to acquisition can be common.
Business failures can often occur after a business acquisition, said Todd Davison, managing director of P…
Read the full article at: https://p2pfinancenews.co.uk/2023/06/14/acquisition-top-cause-of-business-insolvency-purbeck-finds/