• Insolvency market ready for disruption

  • Changing government policy and  technology has opened a new opportunity  for the legal industry.

     

    In a recent article  in Lawyers Weekly , http://www.lawyersweekly.com.au/news/18363-insolvency-market-ripe-for- Ben Sewell   of Sewell & Kettle, suggests that   following the launch of the National Innovation and Science Agenda in December 2015,  there will now be a growing demand for pre-insolvency advisers.

     

     “The direction of the insolvency market is moving away from formal appointments such as voluntary administration towards informal techniques such as pre-pack insolvency arrangements. This has resulted in a drought of work for insolvency practitioners.”

    Mr Sewell also believes the traditional insolvency market is ripe for disruption, with business owners increasingly inclined to search online for rescue solutions.

    “The market is being disrupted because small to medium business no longer takes what their accountant tells them as gospel and their accountant isn’t necessarily interested in getting embroiled in giving technical insolvency advice,” he said.

     “Company directors are shopping around more and this includes extensive online searching,” Mr Sewell said.

    “This is a perfect storm for the insolvency profession. We have a new pre-insolvency adviser category recognised by law, digital disruption and a drought of insolvency work.”

    Another example of technology removing professionally imposed barriers to entry and providing consumers with new choices.