Informa D&B reported that during the first half of 2014 was a decrease of insolvency proceedings in Portugal to 17.1% compared to the homologous period. The company also noted that this trend “was even more pronounced in the second quarter, with 21.6% less entities entered in a insolvency process”, adding that in the first quarter reduction was 12,6%.
Although these results are positive, there are still Portuguese companies that are closing. One of the responses to this is that “an economically viable business can also be financially non-viable and, therefore, become economically unsustainable”, like affirmed António Vale, CEO of Value Added Partners. Therefore, it is essential to maintain a rigorous strategic planning and management control into companies to avoid these situations.
However, for those organizations that are already at a dead end, the process of Business Reorganization may be the solution, allowing the recovery of business, avoiding premature closure. To learn more about this issue, Value Added Partners has a specific and specialized service, whose information can be found here.
[photo credit: Jean-Bastien Prévots]
