This week I attended an early morning session concerning insolvency and what mistakes can and are made by people trying to protect their assets from “going down the tube”.
One line took my interest in particular: The presenter described how a significant transaction was entered into without any advice being sought or given. When the Liquidator asked “why didn’t they get advice from their accountant before doing the deal” – they said “if we did we would have got a bill for it.” Now it is possible they had a poor accountant and getting advice would not have helped, but assuming the accountant was knowledgeable and accessible, the cost of getting advice and stopping the deal being entered into would have saved them tens of thousands of dollars!Later I paused to think… What other areas in a business or investment person’s life should they seek specific advice from a good accountant advisor rather than go it alone?
Some immediately came to mind:
I struggle to understand why people are happy to spend thousands of dollars – maybe hundreds of thousands – without seeking advice! Some say you should invest 2% of any proposed acquisition with an advisor first. If they show you it is a bad deal – you just saved 98%! Now that IS value!
Hope you’ve found some “value” in the advice above and remember… we’re only a phone call away.
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