When should a company take action to address financial difficulties or potential insolvency?

Business crises rarely develop overnight. Financial difficulties are often preceded by warning signs such as declining profitability, cash flow issues, increasing debt, or liquidity shortages. Identifying these indicators early gives management the opportunity to implement corrective measures before the situation becomes more critical. Early intervention allows businesses to evaluate strategic, financial, and organisational solutions while preserving operational continuity. Studio Veronese supports companies in assessing their financial position and developing strategies aimed at preventing or managing business difficulties.

How can companies reduce the risk of a business crisis?

Assessing eligibility before relocation helps individuals and employers understand which legal requirements apply and how the relocation may affect their tax position in Italy. Proper planning reduces uncertainty, supports more effective long-term tax management, and helps determine whether the tax relief for impatriates may apply to the specific case. Studio Veronese assists employers and international professionals in assessing eligibility requirements and planning the tax aspects of relocation to Italy.

How does Studio Veronese assist companies facing financial difficulties or a business crisis?

Studio Veronese supports business owners and management teams through a multidisciplinary analysis that combines tax, corporate, accounting and financial expertise. The firm helps evaluate available options, plan corrective measures and coordinate necessary activities in compliance with applicable regulations. The objective is to identify the most appropriate solutions for preserving business continuity, managing the critical phase as efficiently as possible and guide entrepreneurs through a situation that requires objective analysis, multidisciplinary experience and a structured approach to decision-making.

Service

Managing
Corporate Crisis

Service

Immigration

Please contact us for a consultation:

+39 02 48519867

In 2019, the Legislator introduced the Bankruptcy Law reform, containing new regulations making it MANDATORY for business owners to monitor their businesses (sole tradership or company) to PREVENT crisis situations arising from insolvency.

Download Our Brochure

YOUR business is affected

All business owners (including individuals) and company directors are affected, and must adopt a system of PREVENTIVE monitoring of the business’s financial performance.

YOUR liability has increased

The Business Crisis Code amended the articles of the Italian Civil Code concerning the obligations of business owners (directors and members) and the supervisory body, introducing a new, onerous form of DIRECT and PERSONAL liability in the event of failure to oversee business performance.

You must ACT as soon as possible

In the event of critical difficulties, the new alert system involves specific obligations to report the situation to the Debt Settlement Bodies (Italian Chamber of Commerce, the Courts). You must not be unprepared. By activating monitoring of your business right now, you are safe from future problems. Even if your business is healthy and has never encountered any problems, the mere fact of not having adopted a monitoring system gives rise to civil and criminal liability, which should not be underestimated in the event of a subsequent crisis.

Studio Veronese can support you in managing and monitoring your business

Get a quote

What do you need to do?

The law requires businesses to adopt appropriate monitoring tools and put a suitable organisational structure in place to MONITOR ALERT INDICATORS.

Art. 2086 c.2 Codice Civile

“The business owner, operating as a company or group, is required to put an organisational, administrative and accounting structure in place that is appropriate to the nature and size of the business, including as regards promptly identifying critical difficulties and the inability to continue as a going concern, and to act without delay to adopt and implement one of the tools provided for by the system to overcome the crisis and resume business as a going concern“.

What action should I take?

Every three months, assess the situation, the financial result and the outlook for the following 6 months;
Regularly update the accounts to determine the financial result for the period;
Check that the net equity (capital + reserves + profits) has not fallen below legal limits;
Prepare a cash flow forecast (income and outgoings) for the next 6 months, to check that you are in the position to meet all your financial commitments;
Analyse all other (existing or potential) risks that may make it impossible for the business to continue as a going concern, leading to the business closing down.

Managing Corporate Crisis