Because governments stepped in with massive stimulus packages, the recent downturn has not been typical. Normally, more businesses would have failed, with the stronger ones leading a rapid recovery. But, says Michael Fingland of Vantage Performance,because many have survived but still have debt on their books, the recovery this time is more drawn-out. And -- as managements become worn out from coping with crisis after crisis and run out of ideas -- companies are still running into trouble. This is particularly true in sectors not benefitting from the strength of the mining industry, he says. Whether a failing business can be turned around will depend on its point of difference in the market and how long it's been in distress.Rapid growth can also be a problem -- too many businesses don't have the systems in place, or the management skills, to cope -- they become victims of their own success.
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