corporate turnaround and mediation
Business failure is a big issue that is often ignored, until it is too late!
At worst the business can go bust, jobs can be lost, directors can be held personally liable and potentially lose their houses, their self-esteem and wealth may be permanently damaged. There may also be issues in respect of wrongful trading, which may carry penalties or even imprisonment.
At best, the business can recover and have ongoing value and wealth generation.
Here’s how it works
In all too many cases businesses that are struggling do nothing, they are paralysed and take no significant action to prevent failure. This paralysis can be terminal.
The first stage is to identify the fact that you have a company or business that is in difficulty. There may be wide and varied reasons why the company has got into difficulty; in reality, few companies manage to turn themselves around without some form of external support and assistance. Identifying the need for support is often the first step. Sadly too many businesses react too late, opportunities may be missed and failure may follow. The ‘head in the sand’ approach is too common and never works!
We recognise that with companies in difficulty three levels of advice and assistance may be required:
- Advisory Work. This will include the input, if necessary, to help the business recover. It can also cover guidance on the correct legal steps that can be taken in a financially tight situation. This may include acting as mediators or guiding on techniques to ensure any ultimate demise or failure is controlled.
- Guidance through a form of insolvency process, preferably a company voluntary arrangement that results in the survival of the company, but possibly administration or liquidation. This should be planned carefully; working closely with an insolvency practitioner is important for a business owner. We can help to ensure the loss for the business owner and bank is minimised.
- Negotiating Deals. There may be a way of providing a recovery vehicle for the core business, such as a new company, into which funding could be injected to acquire the trade. This could only be carried out in exceptional cases.
What do you get?
The key to obtaining the best possible results is being involved early enough. This gives time and flexibility in problem situations to have room to effect constructive solutions. A free independent review is offered, a consultant will discuss the situation and dangers for the business and its owner. A financial position and recovery plan is known as Healium Rescue.