Business Rescues Abound Despite the Recession

Many businesses in financial difficulty can be turned around and saved rather than going straight into liquidation, say county business rescue and insolvency experts, Marshman Price.  According to a survey of their own cases, 35% of the time it was possible to save all, or at least part, of the business.

Managing director, Alan Price, commented: “We analysed all the cases where we had been formally appointed as liquidator or administrator in 2009 and were pleasantly surprised by the results.  In addition, we also advised informally on a large number of others where we were able to help directors deal with potential problems or assure them that if they took certain remedial action, they were OK to continue trading.”

Marshman Price has experience in many fields of business and has assisted recently in saving two hotel operators, two professional football clubs, a restaurant, a storage contractor and an engineering company.  However according to director, Gary Pettit, “You don’t have to be an expert in a particular company’s business to help rescue it.  What insolvency practitioners do is very rapidly assess the strengths and weaknesses of a business, using sound business principles and identify how any problems can be dealt with to make it viable.  We can then use formal insolvency procedures if necessary to make the rescue work.”

The key is for management to recognise that where mistakes have been made or weaknesses exist, these have to be addressed to avoid the company getting into trouble all over again.  Directors need to take advice from a properly-qualified expert as early as possible to avoid a problem becoming a crisis and then act on the advice given.

Alan Price added: “If we are consulted soon enough we can often help prevent the position getting out of hand.  Any director who thinks his company is insolvent, or may become so, should take advice urgently from his accountant or a licensed insolvency practitioner.”

For those businesses who are concerned about the continued viability of their business,

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