Abstract
While it is easy to see the obvious signs of current financial distress such as an overly leveraged balance sheet, covenant defaults, or delayed payments to vendors, the more intriguing question is how to predict trouble before it arrives. This article presents several techniques that can be quite helpful, such as review of prior acquisitions, profitability by product line, comparison of projected and actual profitability, and others.
- © 2002 Pageant Media Ltd
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