Business reconstruction - the formal way

How to reconstruct and recover your business the formal way

Company administrations are not all they should be, because of the costs involved it makes it impossible in a lot of cases to rebuild the business.

To make matters worse, the majority of businesses that enter into formal reconstruction, known as administration, have very little information in regards to management accounts, and most of it is out of date. And to know exactly where the company stands financially, all accounts need to be brought up to date, and this is a very costly process, so whatever money is left in the business, it soon gets chewed up in Administrator's fees.

Many people believe that the present system of formal company administrations which is controlled by registered liquidators is the best way to reconstruct, however the Administrator's role is to bring about control to ensure creditors receive the maximum return, but this is just one very small part of what is required to reconstruct a business. And any other work that is required should be done at much lower rates than which they charge.

If an Administrator has to be appointed, your consultant will assist the Administrator, which will result in saving you money, they will monitor the business throughout the recovery phase, bring the accounts up to date, they will review the whole of the company's operation in terms of what an Administrator might want to know and present the Administrator with a clean and complete brief, which will save you thousands of dollars, as our charges will be dramatically less than the larger Accountancy firms.

Once the Administrator is appointed we project budgets and do regular cash flow analysis, from this we can work out when the company can pay old creditors and what amount. And as you are going back into the market place with potentially the same problems that contributed to the situation that you are now faced with, we'll discuss these with you and put in a plan to rectify them. We will also deal with any legal problems if and when they arise , and we will work with you to ensure that you comply with the terns of the Deed of Company Arrangement.

To find out more information about formal reconstruction and how we can help you, click here to make a time for us to analyse and discuss your situation.