Business Turnaround And Rescue UK
Business Turnaround And Rescue UK for companies with a viable future, turnaround options exist to help your company remain viable! When a company registered in England & Wales experiences pressure financially. It should watch for insolvency warning signs. If your company is insolvent, then a company voluntary agreement CVA is not suitable due to not being viable. Perhaps a creditor’s voluntary liquidation needs to be considered before the company faces a winding-up petition and enters compulsory liquidation.
Is your company struggling?
Cash Flow difficulties? CCJ’s?
Facing HMRC Tax Arrears – Corporation Tax, VAT, PAYE?
Pressing Creditor Pressure?
Please then read on:
HBG Advisory are members of the Turnaround Management Association UK and have many years of expertise, dealing with:-
- Business restructuring;
- turnaround specialist;
- business rescue;
- rescue plan;
- raising finance;
- turnaround finance;
- business finance;
- business advisory;
- exit strategies;
- business insolvency;
- business debt advice;
- company closure.
Supporting UK businesses has shown that companies who experience a “cash flow problem” do not understand that this is due to poor, if no profitability. In many cases, the symptom (Lack of cash) is the lack of trading profitable. Therefore, the root cause of borrowing more money is like wallpapering the cracks.
HBG Advisory acts independently and assures those who use our services how we ensure your future is protected.
So, if your company faces financial challenges, you may require business turnaround and rescue. As a result, you will want to explore support from an expert. Please contact HBG Advisory. Our team has helped many companies flourish.
If your company can then demonstrate:
- A viable financial future?
- directors accept the need for change;
- are prepared to fight for the survival of the companies?
Appropriate funding available.
You might therefore be amazed by the available options.
A well-considered business turnaround plan allows a company to move forward, as it can effectively monitor cash-flow while moving out of an insolvent situation.
The critical areas of recovery planning are:
A company recovery plan, or turnaround, should correctly show the current status of a company. Therefore, often clear the air and allow the company to focus on new topics. It may be practical, but employ the services of an experienced, Licensed Insolvency Practitioner help in pandemic.
There are important legal issues to be recognised, and areas (such as tax savings) then recognised. The costs of implementing an external recovery plan remain offset by further cost savings gained.
If your company is struggling and you haven’t yet devised a recovery plan, you may have time to do so. HBG Advisory can guide you on ways to reduce operating costs and benefit from UK insolvency laws? By reviewing every aspect of your business, we can help you achieve an immediate and effective action plan. The peace of mind this brings is assuring for you and your company.
Items required for your business recovery plan
Your plan should identify the most significant areas of your business.
Which are the essential activities you need to keep your company running?
Which necessary documents and other items do those departments need to operate in the short term?
Specify the essential equipment, including software and hardware, business equipment and spare parts;
Build a primary operating budget showing all operating costs of the company;
Identify the minimum finance required to allow your company to perform?
Then, produce an action plan for your business turnaround.
- Each task,
- The items required,
- the responsible parties and
- Their contact details.
Stipulate, who is capable of taking care of each area, should disaster strike. This way, there is no mistake during a crisis, and your company can take quick and resolute action.
Often a business recovery plan usually allows a company to start again. Having evaluated your business’s vulnerabilities and potential for change, opting for such a move is a powerful way to change management strategies, approach problems from a new angle, alter how you provide goods and services, or generally refresh business and renew interest.
For further information on the process of business recovery, please read what does business recovery mean?
In situations where severe financial problems exist, and the future of the company remains at risk. There are legal ways to ring-fence a company while putting a solution in place.
A Company Voluntary Arrangement (CVA) is a powerful tool; providing your company has a viable future?
A CVA helps your company stay clear of liquidation. A CVA allows you to pay your company’s creditors.
What is a CVA?
A Company Voluntary Arrangement (CVA) remains a formal financial arrangement between a company and its creditors. The agreement demonstrates that the company remains unable to pay its debts, but will pay them out of future profits. A company will pay towards its debts for an agreed period, and once finished, obligations remaining remain written off.
Essential Elements of a successful Company Voluntary Arrangement (CVA):
- A future viable business, with the potential to return to profitability.
- Commercially structured;
- Obtaining suitable levels of working capital in addition to the restructuring of debt;
- Management allowing change;
- Determination & hard work though required throughout the duration of the CVA;
- Directors need to employ a skilled Insolvency Practitioner;
- Careful forecasting & Cash Flows.
Who can propose a CVA?
The directors of the companies may propose a CVA. Should the company is in administration, the administrator can propose a CVA. A CVA can only happen if a company is insolvent or contingently insolvent.
How long does it take?
Usually, 7-10 weeks; however, the summary below is possible if all the required information is available from the outset.
Review of the CVA tool.
Please note, though, a CVA is not a panacea for your company, but a compelling structure for reform and protection of a distressed but viable company. However, it is challenging to propose and gain approval. Obtaining CVA approval remains the most straightforward bit of rescue and turnaround. Ensuring a turnaround works, though, is more complicated and requires professional help.
A CVA should:
- Maximise creditors’ interests;
- Maintain viable though struggling distressed companies;
- Conserve economic activity and save jobs;
- In time restoring value to the creditors;
- Provide a real chance of a return for shareholders.
If you require help & support, please contact us.
For FREE Initial CONFIDENTIAL advice regarding company turnaround, please call HBG Advisory. We are on hand to help you and your company deal with every phase of such a decision, and offer solutions to your questions and apprehensions.
Whichever option you prefer, you will find that the specialists at HBG Advisory are with you at each stage to give clear, understandable answers and advise on business turnaround and rescue options.
In the event your CVA fails, then a voluntary liquidation remains the best option. Read more on Free Company Debt Solutions.
So, if you require further help and support, please contact the HBG Advisory advice centre on:
FREEPHONE 0800 612 5448
To discuss ‘Business Turnaround And Rescue UK’, arrange a FREE Confidential VIRTUAL meeting safe and private online.