Ironwood Advisory has accumulated seven key indicators of company difficulty. These symptoms are often evident prior to financial declines aptly measured by Z-Scores and other financial yellow or red lights. Any one of these simple financial and qualitative indicators is an issue of concern. A combination of them is an issue of substantial concern.
If your company exhibits one or two of these symptoms, we should talk. Although you may not need Ironwood's services, a conversation may help in your company's response to these issues.
If your company exhibits more than two of these symptoms, we would like to spend some time with you to determine whether there are services that we can provide to help you avoid worsening conditions.
If your company has four or more of these symptoms, the ailment or ailments have developed to a very serious state and we would suggest an immediate and high priority consultation regarding options.
Cash flow (or earnings before interest taxes depreciation and amortization, EBITDA) is rapidly declining or has been diminished from the norm for a prolonged period of time.
Your company is considering strategic alternatives as the current business model is not functioning up to your expectations.
There have been sudden cuts in key personnel, or more than one resignation at executive level within a one to two month period.
Targets for product delivery or market penetration have been repeatedly missed.
Your strategic alliances are suffering, nonproductive, or have been discontinued by your company or your partner company.
Too many shortcuts are being taken; quality of the product or service is significantly down.
The valuation of the company's market sector has fallen precipitously. Your customer base has similar problems. The competitive landscape has seen a major change.