At Marshman Price, our approach is always to work closely with directors and other stakeholders to provide the best possible solution and outcome for companies. That means asking the right questions and listening to the answers to come up with solutions that work for you . Our aim is to provide a quick professional appraisal of the business operations and devise a strategy that will form the basis of a sound financial restructuring.
When we provide financial recovery services for limited companies and partnerships, there are a number of options that we consider. These include:
Informal Rescues and Turnarounds
Working with businesses to implement financial and operational restructuring to avoid problems arising in future. This can involve finding additional sources of finance and assistance with business planning, forecasting and monitoring performance.
Placing a company in administration preserves the company's business and allows it to reorganise and be rescued or ensure the most advantageous realisation of its assets, while protecting it from action by its creditors.
Company Voluntary Arrangement (CVA)
A CVA can be a useful tool to help achieve long-term viability for a company. Basically, it's a compromise between a company and its creditors. Creditors agree to write off part of their debts and receive payment of the balance over a set period. The proposals must have the support of more than 75% of the creditors who are voting at the meeting.
Close consultation with the main creditors is essential and our role is to work with the business's directors and its creditors, to agree a solution that's beneficial for all concerned.
Of course, it's not always possible to keep a business trading. In such a case, a company may be placed in receivership or be liquidated.
In receivership, a company (typically a bank) that holds a charge over a business will appoint a receiver. The receiver's job is to assess the company's worth and possibly restructure it. This may involve making staff redundant or selling all, or part, of the company in order to recoup the bank's investment.
The receiver's aim is to recover the value of the lender's security, and to do this he can carry on the company's operations and realise its assets.
The receiver usually acts as the agent of the company unless or until it goes into liquidation.
If it's not possible to devise an alternative rescue strategy, liquidation becomes the only remaining formal procedure available to a company's directors. Liquidation effectively closes the company down and can be used whether the company is solvent or insolvent.
These can be difficult times for all concerned and we can help you deal with such matters professionally and with understanding. We advise directors of their legal responsibilities, while ensuring that the company's assets realise the maximum benefit for creditors.