Pretty much everyone has heard of bankruptcies, voluntary administration, receiverships and liquidations.
What most people don’t know is that the vast majority of businesses in difficulty could achieve a much better result if they addressed the underlying problems early rather than waiting until it’s too late.
Businesses in difficulty are usually small – medium enterprises that are under the control of individuals who lack turnaround skills and, often, do not have direct access to advisors with turnaround skills.
BPS Advisory can help company directors develop workout proposals and implement strategies to minimise losses. We frequently assist businesses in difficulty to minimise damage to both business and personal finances.
Workouts and business turnaround programs are possible when business fundamentals are sound and creditors are willing to place trust in an informal but structured process that will deliver them a better outcome than might otherwise be the case.
The fundamental problem is that business owners will turn to their existing accountants and / or solicitors for advice and those professionals will most often turn to insolvency firms for assistance. It is there that a problem arises because insolvency firms only get paid when they take formal insolvency appointments – most insolvency firms do not have turnaround / informal workout skills in-house.
BPS Advisory can work with businesses in difficulty to determine the most appropriate strategy and mechanism for the business and for the individuals involved. In this way, BPS Advisory functions like a “half way house” for businesses in difficulty.
If a trade-on strategy is appropriate, BPS Advisory can work with business owners cost effectively to assist, but if an exit is required then BPS Advisory can lead or manage the turnaround process cost effectively and with regard to the future consequences if the corporate shell is or is likely to become insolvent.
And if a formal insolvency appointment is required then BPS Advisory can work with the business owners before and during the insolvency process to deal with antecedent transactions, Reports as to Affairs, Directors’ and Officers’ Questionnaires and claims frequently made by Liquidators such as insolvent trading and residual balances of loan accounts.