Rescue and Restructuring: How Graywoods Can Help
You may find it surprising to learn that Insolvency Practitioners spend a large proportion of their time dealing with companies that are not heading into liquidation or administration, but where there is the opportunity to restructure and rescue struggling businesses.
Despite the potentially negative connotations surrounding the title ‘insolvency practitioner’, IPs are able to use their skills and experience of dealing with struggling businesses to help rescue underperforming companies. This can often be achieved without the need for ‘formal’ insolvency procedures.
The key skills that Graywoods brings to a business rescue scenario include:
- In-depth understanding of how turnaround situations work in ‘real life’
- Understanding the expectations of creditors and the ability to foster trust and understanding between the parties
- A thorough understanding of the processes used by HM Revenue and Customs
- Credibility and confidence when engaging with key stakeholders, including shareholders, lenders, creditors and HMRC
- The ability to review large amounts of financial information and extract the key information to assist effective decision-making by the business
If your client is struggling to cope with a difficult situation, we can help with restructuring and rescuing the business.
A specialist manufacturing company contacted us when they forecasted that they would not be able to pay their next VAT bill. The directors asked us to review the situation, with a view to placing the company into Administration.
Following an in-depth review of the entire business, we advised the directors that the company could be restructured, without the need for a formal insolvency procedure, and we assisted the company in formulating a rescue plan which we managed in conjunction with the company’s management.
Within just a few weeks of being instructed, the turnaround plan that we had formulated was successfully completed. The business was restructured; a loss-making division was sold to a competitor and the company’s cash-flow was re-engineered to ensure long-term viability. The cash injection from the sale of part of the business was more than sufficient to deal with the company’s liabilities and no redundancies were necessary.
Crucially, the shareholders’ value was protected and enhanced by safeguarding the company’s long term viability.
To find out more about Graywoods’ restructuring and rescue services, call us today on 0114 285 9500.