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Company Turnaround – Rescue & Recovery

There are turnaround options for companies with a viable future.

Should a company face financial difficulties, the directors must accept the need for change, enabling further funding. Several business turnaround options remain available to rescue your business. From well-constructed business recovery plans that allow limited companies to enhance cash flow and trade out from insolvency to legally binding arrangements, such as a company voluntary arrangement, company directors are often surprised at the various business turnaround solutions for businesses to consider.

The UK government introduced the new UK recovery plan, providing additional support due to the extension of the Coronavirus COVID-19 pandemic.

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Company Turnaround – Rescue & Recovery – Business recovery plan

A business recovery plan can often clear the air and give a company a new focus. Your business recovery plans should reflect your company’s current standing and consider critical legal areas like tax savings. So it is sensible to engage a licensed insolvency practitioner to advise you.

If your business struggles and you have not yet created a recovery plan, there may still be time to do so. At HBG Advisory, we discuss every aspect of your business with you and your team and help you introduce ways to reduce costs. If needed, use insolvency laws to apply an immediate action plan. 

Company directors should understand the options for company directors in difficulty.

Find out more here.

Company Turnaround – Rescue & Recovery.What are the requirements of a recovery plan?

The business recovery plan should identify the most crucial areas of your business, such as:-

  • The primary departments you need to keep your business operating;
  • Key documents and other items required to work in the short term;
  • The equipment necessary for short-term operation, such as software, hardware, business equipment and spare parts;
  • The minimum funding you need to keep your business running;
  • Establishing a basic operating budget detailing all costs;
  • Who is responsible for each area if a disaster strikes?

However, to have the opportunity to start again. It is essential to have a business recovery plan.

So, after assessing your business’s weaknesses and potential for change, your business recovery plan can help you change management strategies, address problems from a new angle, change how you provide goods and services, or generally refresh and renew your business.

Company voluntary arrangement (CVA)

In severe financial problems, powerful legal ways to ring-fence a business exist, enabling time to resolve matters. One process is a company voluntary arrangement (CVA). So if your business has a viable future, a CVA can help you avoid liquidation and instead focus on paying creditors what you can afford from future profits.

A CVA between a company and its creditors is a formal arrangement. The arrangement highlights that the company cannot pay its debts but can in the future. The business will then pay toward its debts for an agreed period, and once completed, all remaining debts remain, then written off. Find out more here.

Key components of a successful CVA

The success of a CVA however depends on:-

  • A sustainable company capable of returning to profitability;
  • Commercially planned and successful without over-promising;
  • Introduction of additional working capital;
  • Debt restructuring;
  • Management acceptance of change;
  • Perseverance and hard work during the CVA period;
  • Conservative projections.

A CVA is not a cure-all for your business issues. However, it provides a practical framework for change and protection. Once approved, the CVA should aim to maximise creditors’ interests, preserve economic activity, save jobs, return value to creditors, and provide a return for shareholders.

Next stages

If your business faces financial difficulties, you believe you can still save it. However, it is essential to pursue expert advice as soon as possible. The sooner you act, the more options you have available. Don’t hesitate to contact HBG Advisory today for friendly, practical advice. on business and company debt help. At HBG Advisory, we are business turnaround experts and have years of experience helping distressed companies rescue their businesses. You can rely on us to find the right solution for you and your business.

IMPORTANTLY: you’re not alone. We don’t require personal details to answer initial questions about your situation, so call our friendly team today at Tel: 03300 563 600 for free, confidential advice.

Bounce Back Loan advice for Company Directors

Directors should seek professional advice if they have Bounce Back Loan worries regarding repayments. The UK government introduced the COVID-19 support scheme to support businesses through the pandemic. owever, repaying the loans has been difficult. So ensure you seek advice sooner than later.
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