Business Rescue Overview Business rescue can take many forms; business rescue requires strong management accounting systems linked to tight cash flow control. Couple this with some fresh inertia in the business and a revived appetite then the basis for business rescue is in place. We often talk about rescuing the owners and mangers of a business as a lifting of the pressure bought about by a viable plan will have a huge motivational impact. There are 2 business formal rescue processes; Company Voluntary Arrangement & Administration Only Licensed Insolvency Practitioners can be appointed on formal business rescue procedures and are best placed to advise on all rescue options There are also informal options through Business Debt Management and HMRC Debt Management plans What to Look for in a Business Rescue Process Richard Simms, licensed insolvency practitioner discusses business rescue options. What is Business Rescue service Business rescue services are options for companies who may be struggling with historic debts and are looking for a way to help restructure their payments in order for them to continue trading at the same time. This debt restructuring is then matched with a turnaround plan to help the business move back to profitability in a sensible timeframe. The assessment as to whether or not a formal restructuring procedure will be required will be determined by the individual business circumstances. There are typically 2 formal business rescue services: Company Voluntary Arrangement Company Administration What is a Company Voluntary Arrangement CVA? A Company Voluntary Arrangement CVA consists of a legally binding agreement made between the company and its creditors. This agreement will include a new payment plan for the outstanding debts set out over a specific amount of time. If a company was to head into this process then they would be able to continue trading throughout the course of the CVA under the same directors. What is an Administration? Administration provides legal protection for a company against creditors threatening to take legal action against them for lack of payments. While protected it gives the appointed Administrator time to implement a restructuring program within the company to try and cut some of their outgoings in order to streamline the company. Entering Administration must be for one of the following objectives: To rescue the company as a going concern Achieve a better result for the company’s creditors To realise property in order to make a distribution to secured or preferential creditors How FA Simms & Partners deal with Business Rescue Our approach to business rescue tries to develop relevant skills and knowledge to the management of the business to empower them to take the business forward in a positive way with support from ourselves. We try to help by identifying the financial pressure points of the company, establish a realistic time-frame for action to be taken and focus on driving increased sales and revenue. To achieve this it may require a restructuring of resources available to a business to allow for potential growth. If business rescue does not sound like an option then you may need to consider the Company Liquidation options. We offer free no obligation consultations with one of our qualified practitioners. Call or fill in the enquiry form to find out how to rescue your business.