Are you looking for expert assistance for clients whose businesses are facing financial difficulties? It is a complex situation when a once-thriving business hits choppy waters that can threaten its future survival.
Firms of all sizes in the construction sector – from small developers and suppliers to major contractors, can face difficult periods of operational and financial problems.
We understand the fine detail needed when firms want to avoid the devastation of insolvency and turn their business around with a strategy that will deliver direct results.
Our specialist team is adept at coming to the rescue to help struggling businesses assess what has gone wrong, providing concise, easy-to-follow reports that give an independent view of all the circumstances.
What is insolvency in business?
Insolvency in business simply means the company can’t meet its financial obligations. There are two main ways this can happen, either:
- Cash-flow insolvency: The business doesn’t have enough readily available cash to pay bills as and when they are due
- Balance-sheet insolvency: The total value of all assets is less than outstanding debt
It’s a deeply stressful situation when the cash flow dries up and a business can’t pay its debts, with more liabilities than assets on their balance sheet. Sadly, such a company will face being closed down and its assets sold and distributed to its creditors.
There are a number of legal procedures for dealing with the situation under the Insolvency Act 1986. Among the options for company directors is to try to reach an informal agreement with creditors, enter into a company voluntary arrangement or enter administration to allow for breathing space while a plan of action is put in place.
Our experts can help insolvency or turnaround restructuring consultants with:
- The early stages of company rescue
- Working with third party creditors
- Developing future business plans
- Looking at exit strategies
What is turnaround in business?
No one wants to see a business fail, so having a turnaround strategy in business is a good way to review a company’s assets in detail to decide if there is potential to keep trading or find ways to recover as many assets as possible.
Reorganising a company’s finances, operations or structure in an efficient and practical way could breathe new life into the business and set it on the road to restoring profitability.
Who does Naismiths provide business turnaround and insolvency services for?
A business that runs out of money and is in a distressed state will normally seek help from an insolvency and turnaround practitioner (IP). At Naismiths, we help these consultants look at refinancing options in a positive move that could turn the company around.
If the company is so distressed and there is no likelihood of survival, the IPs will look to put the business into administration. Our knowledge of commercial quantity surveying and commercial management can be invaluable in this process. We are particularly skilled in developing successful strategies by:
- Advising on the sales and debt ledgers and finding ways to recover the debts
- Reviewing the scope of debt a company has
- Looking to see if contracts or parts of the business can be sold on
- Thoroughly assessing all the elements that could form a sale
- Analysing whether a new company can be formed from the distressed business
- Preparing a detailed report for the final decision: to continue trading the business in administration – or liquidation
- Informing the IP over the potential amount of money that can be recovered to pay the creditors
- Using key performance monitoring to highlight debt collection efficiency
We are renowned for our high-level strategic advisory role in assisting clients dealing with businesses in great difficulty. We can help with recovery, company restructuring and strategic forecasting to help construction companies of all sizes to stay in business and continue to flourish.
Naismiths’ success as a national real estate consultancy with 60 years’ experience and a 50-strong team in eight UK cities is built on a proven track record of partnerships within the industry.
Find out how our professional and approachable team of insolvency and turnaround experts can help with your projects, whatever the challenges involved.
