Many business encounter tough times. Sometimes these can be overwhelming and the business has to be closed, either by the directors voluntarily winding it up or by a creditor taking action through the courts. Either way, the situation can be perilous and most stressful for the directors and owners.
Here at Robert A Harris, we can help business owners potentially avoid the worst by actively working with them, their customers, their suppliers and bankers to trade out of a potentially business killing situation.
The Immediate Need requires careful management of the working capital funds flow. It will involve negotiations with suppliers and HMRC and possibly working with the HR advisor. This is work we know how to do.
The Longer Term Issue is how to put the business on a sustainable basis for recovery. This will involve looking at the profitability of key elements of the business such as products and customers. There will need to be an assessment of the business staff costs and overheads as well as the appropriateness of the business systems (processes and computers).
This needs to be done by someone who is experienced and independent of the business in order that longstanding beliefs can be challenged. We are able to provide the analysis tools and the insights into how to build profits for the business. We do after all see many businesses doing good things and some not so good. We have the knowledge to bring your business back to life.
Sometimes, it is impossible to help a business recover and the only future is a winding up, especially if driven by the creditors.
However, all is not lost. Often the business can be rescued from the insolvency process with what is known as a Pre-Pack arrangement. Here you need the help of an insolvency practitioner and a valuation expert. It requires great care to see that related parties are not given preferential treatment. The pain needs to shared fairly. However, this is often a route out of a very poor situation that will enable the business to survive by virtue of being able to shed liabilities that cannot be paid.
We work with a licensed Insolvency Practitioner who will be able to take you and your business through this unpleasant business into a better place in the future.
If you feel you need help with recovering your business, please get in touch.