Corporate Recovery Services

Business Strategy Meeting

Whatever your business circumstances are at this time, during our initial meeting with clients our agenda is to establish the history of your company and identify the contributing factors which have brought the business to where it is today.

We provide expert advice on all aspects of corporate matters; 

  • creditors voluntary liquidations
  • business restructuring
  • business downsizing and examination services
  • debt re-financing
  • Interim Financial Management

Our team is made up of highly motivated professionals who have vast experience in a broad range of industries.

In order to provide effective solutions to our clients, we appoint a partner to oversee each case.

We also offer services to shareholders of solvent companies, where shareholders may wish to release value in a tax-efficient manner, or where companies can no longer fulfil an economic purpose, whether as a result of group reconstruction or otherwise.

Identify the current Business Model

In many cases the difficulties facing a Company can be quickly determined by understanding the business model of the company.

 

Identifying a business on the brink of collapse

Managing a business during a recessionary period is an extremely difficult task, especially when cash flow is drying up, and you know your business is a viable entity with either a product or service that your customers want. Emotions can run high, especially if your home and family are also in danger. A business recovery plan helps you take control of the situation and increases your chances of winning the fight to stay in business.

Recovery plans have two goals:

i) Minimising the physical and financial damange caused the unplanned event

ii) Restoring the business to profitability without delay 

There are a number of common issues which may lead a company into trading difficulty, and, if left untreated, could result in a company becoming insolvent.

i)         Poor finance, marketing, production management

ii)       Inadequate succession planning

iii)      Out of date product development

iv)      Directors/Shareholders dispute

v)       Over reliance on one customer/product/person

vi)      Poor working capital

vii)    Events outside management control such as vandalism, accidental damage such as fire or terrorism

viii)   Bad debts management

After identifying the contributing factors to the business current situation, the next stage is to assess if the business is viable.

Is the Business a Going Concern?            

Indicators of a business with a going concern are as follows:

a)      Continuous, and future orders booked

b)      Strong goodwill and customer feed back

c)       Modern and efficient production facilities

d)      Strong line of credit with both suppliers and bank

e)      Identifiable market position

Indicators of a non viable or going concer issues business are as follows:

f)       High fixed cost base

g)      Poor customer feedback and demand

h)      Non competitive pricing

i)        Long term loss making contracts

In assessing the ongoing viability of a business, we carry out a profitability analysis of each Company’s product line or service line, combined with a profitability analysis of the Company’s customer base.

Develop a Recovery Strategy

In order to develop a recovery strategy it is necessary to identify whether the business needs to create a new angle in it corporate image, or, develop a more efficient way of doing business.

 

It can often be the cases were the business needs to develop a combined strategy;

a)      Changing the mix of products manufactured in house

b)      Entry into a new market

c)       Withdrawal from an existing market

d)      Adding new product lines, or deleting an existing product line

e)      Attracting new customers, or reducing existing customers

In some circumstances included with a recovery strategy is a review of the existing components of a Company’s marketing structure.

It can also be the case where it is necessary to re-organize a Company’s financing structure.  Some of the most common finance arrangements include invoice discounting, revenue installment arrangements, selling and lease-back of material assets, in some companies it may be possible to raise additional share capital from outside investors.

Implementing the Recovery Plan

At this stage it is necessary to ensure that all of the contributing factors which brought the business to a near insolvent situation have being accounted for and that a remedy has being prescribed to each contributing factor.

During the implementation stage of the new strategies, diligent management must be maintained with the production of monthly management accounts along with sales target reviews, and if applicable the impact of any new advertising and marketing approach.

Contact us to arrange a meeting

Contact one of our team to discuss how our services may assist you and your business. We can develop timeline that will help set out each stage of recovery of your business

Banner Home  Thumbnail1
© 2018 TD Fitzpatrick Certified Public Accountants