Business Turnaround & Recovery
Many business directors / owners can find themselves in financial distress through no fault of their own, simply the result of the recent natural disasters coupled with global and local economic downturn.
Acting quickly, seeking appropriate professional help and ensuring that you understand your options are critical to the success of any turnaround.
And rest assured – THERE ARE OPTIONS AVAILABLE
We work with you, and your accountant, to assess your business, document the options and ensure that you understand the risks and consequences of each action.
There are both informal and formal solutions for most business issues; the key is communication and early intervention.
We can support you every step of the way to recovery.
Business Assessment
Is your business viable?
Is your business solvent?
Are you sure that you are not trading your business whilst technically insolvent
Is your business sustainable?
Are you just surviving month to month without understanding if you can continue long term
Do you really know your business position?
Are you absolutely sure of your financial position, cash flow situation and access to short term finance
Are you doing ok but don’t realise the risks?
When do you seek help and what help is available?
Critical Red Flags
- No cash flow forecast or a negative cash flow
- Cannot pay debts when they fall due
- On COD or payment plans with multiple suppliers
- No Strategic / Operational Plan or clear business direction
- No access to short term finance
- Falling behind on finance repayments
- Accumulating ATO debt
- Injecting personal funds into business
- No viable market and / or supply chain security
- Poor record keeping and / or statutory lodgement issues
- No risk analysis
- Director stress and mental health concerns
Make Informed Decisions
Many businesses are facing tough times.
Seeking professional help early can ensure business sustainability, get you back on track if you are in trouble and minimise risk of failure down the road.
You need to understand both your current business position, and the options available, before making any decisions.
Once you have undertaken the difficult task of understanding your real position, and what you can or can’t do about it, it is simply a matter of working with us to make a decision on where to from here.
Not formal insolvency events
Not insolvency events
Turnaround
An informal process working with a qualified professional to implement processes to turn the business around
PROS
Not a formal insolvency
Structured plan for business sustainability
Best option for directors if they take action soon enough
Will identify the business issues and provide plans to resolve
CONS
Creditors are not required to negotiate
Safe
Harbour
A formal process working with a qualified professional that provides protections to directors for insolvent trading
PROS
Not a formal insolvency
Structured plan for business sustainability
Provides protection to directors for insolvent trading for the entirety of the implementation of the plan
Must be done with a qualified, experienced and insured professional
CONS
Formal insolvency events
Formal insolvency events
Small Business
Restructure
A formal process working with a registered liquidator that
provides for negotiations with
unsecured creditors
PROS
A slightly cheaper &
quicker alternative to a VA
Protects the business from secured creditor action
for the period of the restructure
All unsecured
creditors are bound by the
agreement
CONS
A formal insolvency that triggers defaults and allows secured creditors to take action
against the business after the restructure
Voluntary Administration /
Liquidation
Formal processes working with a
registered liquidator
that will result in either a business restructure or liquidation
PROS
Protection for directors during VA
Relieves pressure and facilitates quick closure (Liquidation)
CONS
Can be expensive (VA)
Will result in business closure (Liquidation)
How we can help
Business Viability
Assessment
Deliverables
- Business review including
- Financials
- Products / Services
- HR
- Processes / Procedures
- Cash flow forecast
- P&L forecast
- Industry & market analysis
- Risk assessment
- Insolvency impact assessment
- Strategic Plan
- Recommendations on best course of action
Cost
Urgent Business Review and Recommendations
This option is suitable for businesses that are either in immediate crisis by way of a legal claim, letter of demand or negative cash flow; or for businesses that would simply prefer a high level review with recommendations
Deliverables
- High level business review
- Insolvency impact assessment
- High level Strategic Plan
- Recommendations and advice on best course of action
Cost
Proven track record
Manufacturing Business
ON THE NSW MID NORTH COAST
On the brink of insolvency, significant outstanding ATO debt, no superannuation reconciliation or payments made for many years and consecutive losses
Outcome
Now cash flow positive, no outstanding debt, 3 fold increase in turnover and consecutive annual profits
Earthmoving / Plumbing Business
ON THE NSW MID NORTH COAST
Insolvent entity with significant debt, both secured and unsecured
Outcome
Assisted directors / owners to liquidate some assets, retain part of the business to generate income, negotiate with lenders and liaise with asset finance
