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Business restructuring

The sooner we talk, the more options you’ll have

Sometimes, a business has an underlying issue that can’t be solved by just working harder

Financial distress can be complex both in terms of analysing the causes and in identifying and implementing the solutions.

Our restructuring team is part of the wider deals and restructuring (D&R) division which includes all the necessary skills and experience to optimise outcomes for all stakeholders.

Most of our works starts with an advisory role. This typically includes:

Assisting in the preparation of a business plan
Reviewing the options that are available to the directors
Advising the directors on their duties and potential personal risks

This is where our D&R colleagues add real value. We can draw on a huge range of sector experience to assist with business planning and we have dedicated funding specialists whose reach goes way beyond the mainstream banks.

Our aim is to avoid insolvency processes where possible, perhaps by securing fresh funding or by pragmatic commercial negotiation with key creditors (including HMRC).

If formal insolvency is necessary our licensed practitioners will provide the necessary experience and expertise.

Funds returned to shareholders

In the last three years we have carried out over 140 MVLs and returned £121m to shareholders.

Early action can save jobs

Saving a business as a going concern safeguards jobs and maximises returns to creditors. Since the pandemic we have used the administration procedure to save over 250 jobs.

For example, after a difficult trading period long established garage equipment company, Tecalemit, ran into supply issues due to the insolvency of its main supplier which lead to unmanageable cash pressures.

We ran an accelerated marketing process which generated a number of offers for the business as a going concern. A sale was agreed which not only saved all jobs but should also lead to substantial (or even full) payment to all creditors.

Other restructuring services include:

Lender and creditor services

If a secured or other creditor is concerned about an exposure we can help in assessing how best to proceed or to recover the amount due. We normally work with the borrower but where the relationship has broken down we will act robustly for the lender.

Solvent liquidations (MVLs)

A members voluntary liquidation (MVL) can be a tax efficient way to return capital to shareholders of a company which has no further purpose. We can assist in the preparation and execution of MVLs, including minimising the risks of HMRC challenge under anti avoidance legislation.

“I was very pleased with the support from PKF Francis Clark in closing my consulting firm as I approached retirement. I was kept well-informed at each step, had my queries answered promptly, and had full clarity of the process. I certainly felt I was in competent hands.” Elmar Toime