1. The journey for every business is different. We listen to you and
your objectives before proposing a plan for survival and growth.
We work alongside you and your team and focus on protecting
and improving your wealth.
Published on 16 September 2010 by Tony Groom
Employing Restructuring Advisers to Help Save Your Company
There are a number of options for companies who find themselves in financial
difficulties, but a real challenge is finding someone to help.
It’s made more difficult if the directors/owners take the view that they know their
business better than anyone else and infer from this that if they don’t know the
solution, then no one else will.
A second issue is trying to solve the situation alone, via a self-help route. It may be
that research has revealed a number of options and in a situation of financial
difficulty there is a temptation to latch onto the cheapest or first solution. Indeed, you
are likely to think you can’t afford help and as a result persuade yourself that the
cheap solution is the right one. It is no surprise that a lot of companies fail having not
sought any advice.
In either situation eventually a squeeze on cash flow or pressure from creditors tends
to be the catalyst that galvanises action and you are likely to start looking for a
solution.
Who do you turn to for help when feeling as boxed in as this? What’s needed is a
business rescue adviser, but how do you go about the process of finding one from
among the insolvency, turnaround, accounting and consultancy advisers?
Finding business rescue advisers is difficult. It requires a thorough vetting process to
confirm they have suitable experience and offer a rescue process rather than selling
only one rescue solution.
The rescue process should involve a thorough business review to identify a viable
business that can emerge from the process, then developing and implementing an
K2 Business Rescue
The Emergency Service for Business
Call Tony Groom on 0844 8040 540

2. operational reorganisation and financial restructuring plan. One aspect of the
financial restructuring plan will be how to deal with all the company’s liabilities.
In addition to bank and trade creditors a key creditor is likely to be the HMRC (Her
Majesty’s Customs and Excise).
Too often companies are advised to enter a Time to Pay arrangement with the
HMRC to deal with tax, VAT or PAYE arrears or to enter a Company Voluntary
Agreement (CVA) to deal with debts without a realistic assessment of the other
demands on the company’s cash.
The first thing to find out, therefore, is whether the adviser is selling something or has a
vested interest in the company pursuing a particular solution. Having established
they are truly independent, the adviser will conduct a review to establish the core
issues. This should involve looking at more than just the financial problems.
After carrying out a thorough review the rescue adviser’s processes should include
developing a realistic forecast which pulls together the results of its investigation,
including a business plan and updated accounts.
It should demonstrate an understanding of where business is going to come from, ie
what is going to drive sales towards the company, as well as how the company
makes a profit out of servicing them.
It should also demonstrate a real understanding of the strengths and weaknesses of
the business and be able to identify the right restructuring tools to support the
business.
If the business in trouble is seeking help at a fairly late stage, for example as a result
of receiving notice of a winding up petition in the High Court, and the business
rescue adviser’s review has established that the business is viable despite its current
financial problems, the adviser should also demonstrate experience of the High
Court processes to be able to obtain an adjournment that provides sufficient time to
come up with a restructuring plan.
While it is possible to come to the rescue of a struggling business even at a late
stage, the advice is to talk to the Revenue or creditors before they file a winding-up
petition. There are a number of options for dealing with HMRC liabilities even if you
can’t pay.
Either way, support from business rescue advisers with broad commercial
experience, not just insolvency, will help manage the process while at the same time
helping find a realistic solution.
The important thing is that they will work with you as part of the team and in the
interests of helping a viable business to survive in difficult times
K2 Business Rescue
The Emergency Service for Business
Call Tony Groom on 0844 8040 540

3. We are not Insolvency Practitioners. We operate within the law to protect our clients and their wealth.
Our team has worked for over 20 years to help stabilise and return hundreds of businesses to
profitable growth. Once appointed, Insolvency Practitioners do not work for you, they work for creditors
and use your company’s assets to pay themselves. We work for you, not creditors.
More Free Resources for Directors and Business Owners in Difficulty
www.rescue.co.uk
We Save Businesses
We provide experienced advice to directors
We negotiate with HMRC and creditors
We are on your side
Need Immediate Help – Call Tony Groom on 0844 8040 540
K2 Business Rescue
The Emergency Service for Business
Call Tony Groom on 0844 8040 540