Is Liquidation Your Only Option?
Is your company operating at a loss? Are you heading for insolvency and unsure what to do to turn your business around and make it profitable again? Before you enter voluntary administrative or liquidation measures, there may still be a chance to save your company. A comprehensive corporate evaluation by the expert accountants and liquidators at Menzies Advisory may be able to identify a way in which you can regain control over your finances and return your company to profitability.
Our accountants and advisors are experts when it comes to recognising a company which is no longer in a viable financial position and wrapping up all remaining affairs. However, as well as guiding companies through liquidation, they are also able to identify a company which may still be able to continue to trade and return to profitability. By performing a comprehensive evaluation of a company, our experts can assess the viability of the business and develop an appropriate course of action. Sometimes this course of action is towards liquidation but other companies are salvageable.
If our experts consider it possible to return a company to profitability, they will work closely with the director to implement a series of recommended changes devised using our extensive knowledge and experience. As well as steering a company onto the right path, our advisors work to develop a plan for the future to ensure continued sustainability of the company. Here at Menzies Advisory we have successfully orchestrated a number of turnarounds for companies on the brink of insolvency.
Tactics used to support a corporate turnaround may include:
- Debt consolidation – working out a repayment plan with fewer creditors makes it much easier to recognise your financial obligations.
- New monitoring practices – every business must carefully track their cash flow and be able to identify costly or no longer viable practices.
- Change tactics – if you’re falling behind your competitors, identify their advantage from a consumer’s point of view and realign yourself towards your target market.
- Reorganise capital – look at where your money is invested and redistribute it according to what will bring in the greatest profit in the future.
- Down-size – if your business has grown too quickly and overstretched your financial resources, downsizing may solve all your monetary problems.
It is important not to persist in attempts to save a failing company to no avail. Sometimes it is best for directors, employees, shareholders and creditors for a company to be liquidated. Corporate bankruptcy does not have the same negative impact on your credit rating as individual bankruptcy and while it should be avoided, there is no reason why placing your business in voluntary liquidation should impact your capability to run a successful business in the future. In some cases, it is ill-advised to continue attempts to save a company when advised by an accountant or Registered Liquidator that profitability is no longer possible.
For tailored advice from industry experts, contact Menzies Advisory today and find out if your business can undergo a corporate turnaround and regain profitable trading.
Menzies Advisory Liquidation & Receivers are Certified Practicing Accountants and Registered Liquidators with over thirty years’ experience in commerce and insolvency. Company directors, accountants, lawyers and business consultants turn to us for expert, compassionate advice in difficult times. Our professional consultants implement the most practical solutions to meet your complex business and financial issues.