Business recovery and restructuring

Every business – and every business owner – faces different challenges as they evolve. We work with business owners to look at all the options for business recovery. Which means we’re often able to help a business in a way no-one thought possible.

If there’s a recovery solution for your business, we’ll find it and use it. Even if it takes longer.

Business recovery options

Closing your company does not have to mean the end of your business. During business recovery, the key parts of your business could move to a different company and continue to trade without unaffordable debt.

Informal negotiations 

Informal negotiations with HMRC, creditors, customers, financiers and employees is the first stage. We’ll establish contact and secure breathing space to allow a structured business recovery plan to be put together for either a short – or long-term – solution.

The additional credibility that FA Simms can bring to these negotiations will be invaluable in establishing what’s achievable. 

Formal arrangements

Where informal business rescue negotiations don’t work, a Company Voluntary Arrangement (CVA) could. This will give you the chance to pay creditors back over an extended time and to only pay what your business can afford.

In some cases a more substantial restructuring can take place through a Company Administration or even a Creditors’ Voluntary Liquidation. 

Formal business recovery processes like these can split the strongest parts of your business from the rest and move them into a new company. Debt that the business cannot afford remains with the original company and is not transferred to the new company.

After we’ve worked through all the possible options with you to identify which are most suited to your business goals – you’ll make the final decision.

Practical guidance for business restructuring

If your company is facing financial challenges, you’re likely to be tackling many competing problems at the same time. 

We’re here to give you an independent and experienced view of the situation. By guiding you through business restructuring we give you the time and space you need to work with us towards a positive solution.

It’s much easier for us to be objective about your business. After all, we’re not burdened by its history or internal politics. We’ll give you a different view on what’s possible for the business and expertly guide you through the steps of business restructuring.

How we can help with business restructuring

The first thing we do is to re-energise your directors and give them the confidence to believe in the future of the business. Lifting the worry that rests on the shoulders of a director facing financial challenges brings clarity and more mental space to form a practical plan. 

In many cases, your business restructuring plan will involve a formal process like a Creditors’ Voluntary Liquidation. This is used to close your company, extract the parts of your business that are working and put them into a new company. This new company, owned by your current directors, can carry on to a profitable future, without the burden of debt.

Talk to our team of licensed insolvency practitioners and business rescue experts about your situation.

Positive alternatives to business closure

Closing your company doesn’t have to mean the end of your business. The key parts of your business could move to a different company so you can continue to trade without unaffordable debt, removing the need for business closure.

If part – or all – of your business can be rescued, we’ll work with you to achieve it.

Formal and informal business closure options

There are a wide variety of tools we can use to avoid business closure, depending on your particular circumstances.

Informal negotiation is the first stage. We’ll make contact with HMRC, creditors, customers, financiers and employees to secure breathing space and allow us to create a short – or long-term – solution. 

A formally negotiated plan can be introduced through a Company Voluntary Arrangement.  This will offer creditors the opportunity to benefit from the future trading of the business, even though they might not receive the full repayment of their debt.

Where significant change is required a Company Administration or Creditors’ Voluntary Liquidation could stop business closure by rescuing the viable parts of the business and leaving the company’s debts behind.

Whatever the situation, we’ll work with you to understand your goals and find the best way forward.