BUSINESS TURNAROUND SERVICES PORTSMOUTH
If you need business turnaround services in Portsmouth, then 4R Business Recovery is your ideal partner.
4R Business Recovery are business turnaround experts that support business owners, directors and entrepreneurs in Portsmouth to rescue, restructure and turnaround their business.
We have helped hundreds of business owners deal with insolvency problems, and implemented business turnaround strategies to give them a second chance. With over ten years of experience in the industry, we’ve worked with a range of businesses in Portsmouth, including all sizes, from large firms to sole traders.
When a business is at risk of failing, it is always a stressful and challenging time. Fear drains your energy, and dealing with creditors is time-consuming for directors or sole traders. We understand this and offer a free of charge and confidential consultation to assess the position and provide a business turnaround strategy that Rescues, Restructures, Recovers and Rewards your Business.
For more information, contact our team today.
Business and Corporate Rescue Advisors in Portsmouth
What is Business Rescue?
Business Rescue is usually the first step of a business turnaround strategy to provide time to a financially beleaguered business to restructure, refinance and recover.
Typically there is an urgent need to protect the current business model and protect its trade as a going concern from legal recovery action and litigation such as a Winding Up Petition or a County Court Summons.
Rescue strategies include a range of formal and informal mechanisms that protect the business from legal recovery action and provide directors and business owners with time to raise additional finance, resolve litigation disputes or negotiate repayment plans with creditors.
Formal insolvency processes such as a Voluntary Arrangement, Creditors Voluntary Liquidation and Administration are critical tools in a turnaround solution.
We firmly believe that this is just the first step of the business turnaround strategy and any engagement with a formal insolvency solution needs to be part of an overarching turnaround solution. Many Voluntary Arrangements fail as they do not address the problems of an inefficient or non competitive business model.
There is no point in protecting your business by the use of formal insolvency if the underlying issues remain unresolved, as history is likely to repeat itself. The insolvency process, while a critical part of the rescue process is only part of the solution. The full range of tools available to your business should be made part of any turnaround solution. These include informal time to pay agreements, angel investors, refinance, improved financial controls and the introductions of technology and new work processes to drive down costs and improve efficiency.
While a formal process such as a CVA or CVL allows for the restructuring of the insolvent balance sheet, it does nothing to deal with the reasons behind the failure or financial crises of the current business model.
Business Rescue Process in Portsmouth
The starting point in our work is a review of the business. It is essential that we fully understand what you do and why you are currently under pressure financially. Here at 4R Business Recovery, we focus on the critical issues that the company is facing and provide clear, concise and workable solutions.
Our solutions are tailored specifically to suit the needs of the company’s directors, whilst at the same time delivering the best possible outcome for your creditors. We explain the duties of a director when a Company is insolvent, and the errors made by directors which can make them personally liable for the company debts. Our initial review is always free of charge and confidential.
Our Main Options for Business Rescue
- Company Voluntary Arrangements (CVA) – A CVA is an arrangement between an insolvent company and its creditors, to allow a business to pay all or a proportion of its debts back over time. If you believe your business is profitable but suffering from legacy debts, then a CVA is a viable option you should seriously consider. A company (or sole trader would use an IVA) continues to trade, under the control of the directors, rather than being wound up or liquidated. It also offers creditors an opportunity to get outstanding debts partially paid or paid in full rather than the company being wound up or liquidated. Businesses seeking a CVA to rescue their company need to be able to demonstrate that the business can fund the CVA, which may be difficult.
- Creditors Voluntary Liquidation (CVL) – A CVL is the terminal closure of the company with the approval of its creditors, and the liquidation of its assets by an Insolvency Practitioner for the benefit of secured and unsecured creditors. A liquidation is not always the end, yes it provides closure to what is an insolvent company, however, subject to proper processes under the control of a licensed insolvency practitioner, the assets and goodwill of the company can be purchased back debt-free by a new company and the value of the old trading entity preserved. When done properly and lawfully this pre pack allows existing shareholders and directors a second chance and preserves the value of the business but terminates what has become a Zombie company.
- Formal Time to Pay Arrangements and Funding – Subject to creditor acceptance, you can enter into a Time to Pay Arrangement and or seek refinance or angel investment to avoid formal insolvency processes. The presence of a peer to peer lending market that has developed over the last five years means more finance is available and is probably the single significant cause of the fall in formal insolvency cases.
Business Restructuring and Recovery in Portsmouth
Once the pressure of business failure is under control (business rescue), we need to execute steps two to four of the business turnaround strategy.
We have experience of how to analyse the critical metric that drives the business model, including Sales, Marketing, Finance, and Operations.
We understand how to identify risks and rewards and manage them to help a company reposition itself for its future growth, allowing for the addition of new products and customers or enabling expansion into new markets. The goal is to increase companies value and sustainability to deliver your lifestyle goals or prepare it for sale or to transfer it to the next generation.
Business Restructuring and Recovery in Portsmouth
We will assess your circumstances, explain the options and guide you through the processes to achieve the optimum outcome. We aim to preserve value for stakeholders and, wherever possible, to help businesses survive and safeguard jobs.
Business Recovery and Restructure Process
The time that it takes for business restructuring completion can depend on many things, including whether the restructuring is reacting to a funding crisis or insolvency and you need a company to make explicit changes within a specified period. Or strategic, for example, when business leaders recognise a shift in consumer preferences and see the opportunity to position their company as a leader in the market. Whatever the reason for a firm restructure, thorough planning is essential, enlisting the help of a qualified and professional restructuring team like 4R Business Recovery is a great option and will ensure a successful restructure.
The process includes the following steps…
- Fact Find and Risk-Reward Audits
- Setting Goals
- Identifying change and change agents – Processes and People
- Creating short- and long-term plans to execute a step by step plan of action
- Applying short-term corrective actions
- Calculating capital and cash flow needs and securing funding
- Producing real-time management information and accounts to evaluate the results
HMRC Debt Services Portsmouth
Owing HMRC money will inevitably leave you feeling worried and stressed, especially if they have started legal proceedings against you or your company. Whether you owe money for VAT, PAYE or Corporation Tax, the process is much the same, and at 4R Business Recovery, we are experienced at guiding business owners through it.
Here at 4R Business Recovery, we have helped thousands of companies over the years that have fallen behind with tax payments to HMRC – whether it’s corporation tax, VAT or PAYE. We liaise with HMRC directly and can do so on your behalf to reach a Time To Pay agreement or ample breathing space for your company in a time of financial distress. We can advise on several possible solutions relating to tax efficiency and help reduce the burden of HMRC pressure.
If you’re facing court proceedings from HMRC, you need to take action today. 4R is often called in at the eleventh hour, so even if you’re due in court tomorrow, and the situation feels desperate, call us on 0800 0385 140, and we can act immediately.
Insolvency is defined by your company’s ability to pay debts as and when they fall due, and whether the company assets outweigh the company liabilities. If cash flow is a significant concern and your company is struggling to meet its debts on time, it would be deemed insolvent, and directors have key responsibilities in these circumstances with regards to trading and seeking finance.
Are you facing financial distress or insolvency? We can help if action is taken early enough. We’ll deploy a team of specialists to deal with any business, from owner-managed enterprises to large multinationals. We are not Insolvency Practitioners but have many Insolvency Practitioners on our panel ready to provide independent and regulated advice to you.
For Business Restructuring in Portsmouth, Contact 4R Business Recovery
If you require business rescue plans and services in Portsmouth, give the team at 4R Business Recovery a call today. We help business owners, directors and entrepreneurs across Portsmouth to restructure their company effectively and efficiently.
If you require more information on the business rescue services we offer, please feel free to contact our team today. We’re home to an experienced team who have worked with many different businesses in all shapes and sizes, and you can trust that you’re in the right hands with 4R Business Recovery. We have all of the necessary solutions to help rescue your business effectively, for more information, contact our team today.
Frequently Asked Questions About Business Rescue in Portsmouth
How do I know if my Business can be Recovered?
4R Business Recovery believes that many businesses fail needlessly and that with proper advice and support the directors willing to commit to executing a turnaround plan can rescue a failing business and restructure the operation for success.
What happens to the directors of an insolvent company?
The liquidator, administrator or Official Receiver has a duty to send the Insolvency Service, a report on the conduct of all directors who were in office in the last three years of the company’s trading. The Secretary of State for The Department for Business, Energy & Industrial Strategy has to decide whether it is in the public interest to seek a disqualification order against a director.
Examples of the most commonly reported conduct are:
- Continuing the company’s trading when the company was insolvent;
- Failing to keep proper accounting records;
- Failing to prepare and file accounts or make returns to Companies House; and
- Failing to send in returns or pay to the Crown any tax that is due or trading at the expense of HMRC.
To put this into context only around 20% or the 17,196 insolvencies in 2019 will result in action against a director. If you are concerned, call us today on 0800 0385 140
How much do you charge for your Business Rescue services?
An initial consultation with one of our team of expert advisors is always free. We can set it at a convenient time for you as well as method (physical meeting/virtual consultation), and we can discuss the most pressing issues your business faces.
Our services can vary depending on what we’re required to do – but where we’re able to, we give an outline of the sort of fees to expect – which are competitive and in line with the excellent, professional service you would come to expect from us.
I owe HMRC and I am unable to pay them now, what can I do?
Take early advice from 4R Business Recovery by giving us a call today, we will review the risks and costs of the options available to you and find a solution to allow the business to continue trading. It could be as simple as providing cash flow and securing a Time to Pay Arrangement from HMRC, or seeking a formal Voluntary Arrangement to protect your company from a Winding Up Petition. If required we can help you engage with an Insolvency Practitioner.
Why do I need a business restructure?
Many firms face difficulties dealing with the frequent changes in today’s economy. Should the reason for your company restructure be to save the business, or to reposition itself for the future, the restructuring team here at 4R Business Recovery helps company owners to deal with these challenging issues.
Here are just some of the ways that our business restructuring methods can help your company:
- Reducing costs
- Putting a focus on critical products, customers and markets
- Incorporating new technology into operations to deliver efficiency
- Making better use of colleague talent
- Improving your company’s competitive advantage
Some firms may also decide to restructure their business if they need to decrease or consolidate their debt, or if they’re looking to spin off into a subsidiary company or merge with another.
For more information on the corporate restructure service we offer here at 4R Business Recovery in Portsmouth, call our friendly team today.