For any business that is underperforming, business recovery is normally the best solution. There is a strong argument for business recovery in businesses facing insolvency as well as businesses that have simply lost direction. At UHY Hacker Young, we see business recovery as a way of preserving the ongoing status of a business and a way of boosting businesses that need to get back to a profitable trading situation. Irrespective of how severe a business’ difficulties are we can help. Business recovery brings a fresh approach to planning, working capital, finance and business efficiency to any business that is not achieving its full potential.
How it works
Business recovery is primarily concerned with the business planning process, the development of more effective working capital practices and seeking out more efficient financing.
The business recovery process focuses on the development of appropriate and achievable cashflow forecasts and budgets, as well as the construction of a management accounting procedure that enables the accurate, regular assessment of performance against the plan. At UHY Hacker Young, we encourage the development of skills to micro-manage cash as an important part of the business planning process.
Working capital improvements
Working capital is the lifeblood of business and making sure debt collection practices are strong and that customers respect payment terms are often at the core of any business improvement. Other practices, like negotiating more attractive supplier credit terms; considering offering discounts for early payment and keeping stock to a minimum also help the business recovery process. At UHY Hacker Young, we seek out every possible improvement in working capital practices.
Reviewing and renegotiating finance and funding are good standard business practices as well as an important part of the business recovery process. Reorganising finances opens up new business opportunities that may not have been apparent before. Options such as using invoice discounting or debt factoring for example can sometimes lead to significant cashflow improvements. Other opportunities include refinancing of company assets or using the Business Payment Support Service to meet tax obligations. At UHY Hacker Young, we work through business financial arrangements to make sure they are as efficiently organised as possible.
What if business recovery is impossible?
Business recovery is a highly effective process for many businesses, but in certain circumstances turning a business around is not possible. In this case, selecting the best insolvency procedure is extremely important. Options such as Company Voluntary Arrangements, which allow business managers to stay in control of the business and continue trading, may well be the right way ahead for certain businesses. However in order to make sure that this is right for you and for your business, it is essential to seek advice, both for your own protection and that of your debtors and creditors. At UHY Hacker Young, we can help.
The next step
If you would like to find out more about business recovery, please contact us.