There were several issues that
arose due to acquisitions that had recently taken place. The company was used
to acquiring companies for moving into new industries, so the fact worked here
and there were a lot of acquisitions that were to be considered hasty decisions
on the end of the company.
Were there industry pressures or company specific headwinds?
As there were more competitors
moving into this industries, and several of them were quite successful as well,
so the company needed to diversify, and it has been its history that
acquisition had been the medium of this diversification.
Were there any “triggers” or upcoming “triggers” you can identify?
The depletion of cash flow is the
greatest indicator, to restore it to full bloom, the company took on a lot of
debt. More debt meant more interest, and there was not enough capital
available. This increase in debt was the trigger that made the company file
bankruptcy.