How to reconstruct and recover your business if the business is encountering financial problems, without recourse to legal solutions?

If you are like most business people, the concept of business reconstruction may not be understood. That’s not unusual considering it’s a new and specialised service, which until recently wasn’t really made available to small and medium business.

In a nutshell, if your core business is profitable, then in most cases it is recoverable without the need for the formal appointment of an administrator or liquidator. There is virtually no company with a profitable core business that is not recoverable, no matter what the nature or seriousness of the problems it faces.

Our approach is different to most. One of our consultants, being qualified practicing accountants or business industry leaders with a vast amount of experience in business, will be glad to visit you and outline the benefits of our reconstruction service. Once you come aboard, our dedicated consultants will bring your management accounts up to date if required, provide cash flow projections, and determine and recommend a realistic timetable for repayment of debt. They will also identify surplus assets in your business that are no longer needed and can be sold to generate cash.  In addition, they will:

  • Look at and advise and help put in place cost reduction measures such as outsourcing.
  • Consider and help put in place finance options available for example debtor financing, negotiating and or bringing about installment arrangements with creditors.
  • Report back to your creditors and negotiate or put in placean informal “fix” with them where possible. Thus, avoiding very costly formal appointments,

In many cases, it is open to the shareholders of a company facing financial difficulties to sell the business (on a proper valuation) to a new company controlled by the same owners.. Thereafter the old company can be placed into the hands of a liquidator, who will firstly satisfy him or herself as to whether a proper price was paid and then distribute the proceeds of sale amongst the creditors.

To find out if your business could benefit from an informal reconstruction, click here to make a time for us to analyse and discuss your situation.

If all else fails, there are formal techniques which are truly effective. Read more for formal business reconstruction techniques.