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When a business is at risk of insolvency, a distressed sale can offer continuity of trading and preservation of employment, which is likely to result in a better outcome for all stakeholders, including creditors. This is often delivered through a pre-packaged sale of the business and assets, which usually needs to be carried out in a short time frame.
A pre-packaged sale of the business and assets is very different to any acquisition of share capital, and the process of marketing, due diligence, submission of offers, negotiation and completion can occur within a matter of weeks or days.
Our team have hands on experience of dealing with sales of this nature.
Where cash is becoming tight for a business it is imperative that management can identify what the short term cash requirements are whilst formulating a longer term strategy. Without this, there is a risk that severe cash flow difficulties could force insolvency with little or no notice.
Is your banking relationship now with the ‘business support’ department of the bank, or do the bank wish to impose a costly business review (at your expense)? If so, these dealings need to be managed very carefully and through our experience of acting both for and against banks, we are able to add value to business owners throughout this process.
If you require additional facilities from your existing lender, or are currently looking to raise finance, we can assist with this process and have a network of contacts who we can introduce you to.
If your current funder is no longer suitable for your business, we can review your borrowing requirements and recommend a number of organisations who we believe can offer facilities tailor made to suit your needs. We do not charge the client for this service and would typically introduce 2 or 3 funders to demonstrate our independence, whilst also ensuring the tender is competitive.
We can work with management form a turnaround strategy, by looking at key performance indicators, financial performance measures and operational processes. Once a plan is formed we are then able to help management adopt and monitor these turnaround plans.
Many businesses that have experienced cash flow difficulties will have arrears with HMRC. We have a high success rate of agreeing formal ‘time to pay’ arrangements for clients, by understanding how best to structure any offer and assisting with subsequent negotiations with HMRC.