The job of the restructuring advisor starts not when an actual restructuring is required or has been triggered, but long before any such situation arises. Identifying early warning signs of distress is therefore key to firstly, identify potential restructuring candidates that might become clients of the restructuring firm in the future. Secondly, to assess the situation in detail ahead of time, therefore, avoiding the time pressure that usually comes when a company is running out of liquidity and is only capable of operating for a few more days. Thirdly, to think about potential solutions to sort out the situation. These usually include a turnaround plan, which outlines measures to improve profitability and or conserve cash, asset disposals to raise additional liquidity, or ultimately, the liquidation of company assets if the company is no longer viable as a going concern. We can classify these warning signs or signs of distress into two buckets. Financial and non-financial, financial signs of distress are usually the most important signs to keep track of, especially liquidity and leverage, as they will determine respectively for how long the company can continue operating based on available liquidity and the pace of cash being burned through the day to date running of the company, and how unsustainable its capital structure is based on the total indebtedness relative to its EBITDA generation. For financial distress, some of the key signs to look out for are operational underperformance, liquidity problems, and worsening credit metrics.