Business recovery and restructuring

Facing financial challenges can seem overwhelming. But with the right strategies and support, turning around your business could be more attainable than you think. Business recovery and restructuring offers hope and practical solutions to businesses struggling with financial difficulties. 

Can a business recover from insolvency?

Recovering from insolvency can be a pivotal moment that sets your business on a new, more sustainable path. With the proper guidance and a restructuring strategy, you could successfully navigate your business through turbulent times and emerge stronger.

What is business recovery?

Business recovery involves taking strategic actions to overcome financial distress and return to profitability and stability. It’s about identifying the core strengths of your business, addressing immediate financial challenges and laying a foundation for long-term success. 

Recovery strategies may include negotiating with creditors, re-evaluating your business model or implementing cost reductions.

What is business restructuring?

Business restructuring is a comprehensive process that involves making significant changes to the financial and operational aspects of you company, to improve its future prospects.

This could mean altering the business model, reducing staff, consolidating debts or even selling parts of the business. The aim of restructuring is to create a leaner, more focused and more financially viable business that can return to profitability and succeed in the long-term.

Get deeper insights into survival strategies with our essential guide to business survival. It’s packed with practical steps and expert advice drawn from over 46 years of insolvency knowledge. Download it now and start your journey to business recovery today.

Is an insolvency processes needed in business recovery and restructuring?

If your business has potential for recovery and restructuring, a licensed insolvency practitioner can help you to weigh up informal options, before you consider a formal, legal insolvency process. 

Informal negotiations with HMRC, creditors, customers and lenders is usually the first step we take, if we believe your business is viable and able to be saved through business recovery or restructuring. In this case, your insolvency practitioner will establish this contact and aim to secure you breathing space, so that they can work with you to put together a structured plan for your business’ recovery. 

The additional credibility that a professional brings to these negotiations can be invaluable in establishing what’s achievable. 

Can an insolvency process help with business recovery and restructuring?

Formal arrangements can offer a more structured solution to insolvency. Company Voluntary Arrangement (CVA) is a formal alternative to creditor negotiations and gives you the chance to pay creditors back over an extended time. This could also be used if negotiations with HMRC are unproductive. 

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.

How to start recovering from insolvency

Financial challenges don’t always define the fate of your business. Business recovery and restructuring could help you turn a difficult situation into an opportunity for growth and reassessment. Taking these practical steps now could make all the difference.

Assess your situation: An honest assessment of your financial situation is crucial. Identify key issues and the scope of your financial distress.

Communicate openly: Transparency with your accountant and other company directors can build trust and support for the restructuring efforts.

Seek expert guidance: Consult a licensed insolvency practitioner who can provide an independent view and practical solutions tailored to your situation.

Reach out today to start the conversation about your business’ recovery and restructuring journey.