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?

Do you have a plan that outlines your business model and substantiates viability over the short and medium term.

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?

Have you considered all of the risks that may impact your ability to continue to trade and developed mitigation strategies

When do you seek help and what help is available?

Do you understand at what point you should be asking for help and how to find a qualified, experienced and insured professional

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 / can’t do about it, it is simply a matter of working with us to make a decision on where to from here.

 

Not insolvency events

Not insolvency events

Turnaround

An informal process working with a qualified professional to implement processes to turn the business around.

PROS

Not an 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

No protection for directors from insolvent trading
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 an 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

Creditors are not required to negotiate

 

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 alternative to a VA
Protects the business from secured creditors 
for the period of the restructure
Unsecured
creditors are bound by the
agreement

CONS

Formal insolvency that triggers defaults and allows secured creditors to take action against the business after the restructure

VA /
Liquidation

Formal processes working with a
registered liquidator
that will result in either a business restructure or liquidation

PROS

Not an 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

No protection for directors from insolvent trading
Creditors are not required to negotiate

How we can help

Business Viability
Assessment

This option is suitable for businesses that are not in immediate danger of becoming insolvent and would benefit from a full analysis and plan

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
The document produced forms the basis for compliance with the requirements of Safe Harbour, SBR and VA.

Cost

$4,000 - $15,000 depending on business size and complexity

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
The document produced will provide a review of immediate risks, business viability, overall business plan and clear advice on the recommendations for the business to move forward.

Cost

$2,000 - $5,000 depending on business size and complexity

Proven track record

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