Corporate recovery - Prevention is better than cure

Our approach to corporate recovery is summed up in the phrase 'Prevention is better than cure'.

The key to preventing business failure is to have the right controls in place to help identify areas of poor performance or early signs of distress in a business and to take appropriate remedial action if and when such signs appear.

Moreover, directors who fail to take such action run the risk of committing offences under the Insolvency Act such as fraudulent trading, misfeasance, wrongful trading and preferential or undervalue transactions - for which the penalty might be disqualification - or worse!

The key is to seek professional help as soon as the first signs of difficulty appear. With timely advice a company may be saved from liquidation or receivership, particularly if there is a genuinely profitable core to the business.

Even where a business is in a relatively advanced state of distress, we still regard insolvency as a last resort and prefer to explore all possibilities of restructuring the business and setting it on a path to full recovery. Often this will involve refocusing on core business activities, introducing stringent cost controls and setting clear profitability goals.

This approach, we believe, is in the best interests of all the stakeholders - shareholders, directors, managers, employees, customers and suppliers.

If all else fails and the business has to go into administration, receivership or insolvency, we can advise and assist with this process and guide you through the financial, legal and regulatory implications of such a course of action.

Call 0115 9324254 today to discuss how we can help keep your business in good shape.