How can a profitable business collapse?

The collapse of a well known Scottish legal firm, reportedly making an annual net profit of £950,000 with turnover of £4.9m, may seem surprising to most people.

In many ways it is surprising, but businesses and the modern economy change at a rapid pace nowadays and successful businesses can simply be left behind if they do not plan, act and change to be fit for the future.

For this legal firm, it was a number of partner resignations that set in motion a chain of events that would have resulted in a significant loss of both clients and turnover. In the absence of significant investment, the business would not be viable and in came the administrators.

There are a number of risks and lessons that can be identified from this unfortunate story. Our EQ Professions specialists are on hand to help you understand the risks that your business faces and how to safeguard the future of your business.

For more information, please contact our EQ Professions team at professions@eqaccountants.co.uk or contact one of our offices.