Who do we help? - Sewell & Kettle Lawyers · 01 We help a variety of small-to-medium businesses ·...
Transcript of Who do we help? - Sewell & Kettle Lawyers · 01 We help a variety of small-to-medium businesses ·...
Who do we help?We advise and represent small-to-medium sized businesses facing an insolvency challenge. We explore all avenues to protect and recover value for the owners of the business.
01We help a variety of small-to-medium businesses
· Businesses with up to 200 employees· Businesses that are established with goodwill value at stake· Businesses in up-and-down industries: construction, transport, professional and technical services, retail, mining
· Businesses owned by an entrepreneur, small group, or family
02Financial crisis occurs
· Losing principal customer or large customer collapses· Owner sickness or absence· Tax problem · Big project or key contract drains the business· Adverse outcome in litigation· Crisis is compounded by accounting issues, thin working capital, management deadlock/capacity limits and/or low bargaining power in a highly competitive industry
03Current professional advisers don’t have the skills to help
· Generalist tax accountant· Commercial lawyer· Management consultant· Phoenix operators· But no one is put forward with up-to-date and relevant experience
Why? SMEs don’t always get the assistance they need – the sorts of advice that large corporates take for granted isn’t readily available
04Who do you trust to handle this?
· Directors may never have engaged an insolvency specialist before
· You may have heard stories about overcharging and foul play· Your accountant has referred you to someone who wants to meet you at a café or pub (phoenix operator)
· You met an insolvency practitioner who is only offering a formal appointment (voluntary administration)
· You need a co-ordinating adviser to work with accountants, financiers, creditors and other stakeholders
05What are the immediate options?
· Rectification of accounts and cash flow analysis may be enough
· Pre-pack insolvency arrangement or sale· Safe harbour restructure· Formal appointment (liquidation or voluntary administration)
· Read our infographics:· Ben’s 10 commandments for turnaround· Ben’s recommendations on who to avoid during the downward spiral of insolvency
· Summary of the downward spiral of company insolvency
06What is the first step?
· Call Sewell & Kettle to discuss the matter confidentially· Discuss different options including:
· Safe harbour restructure· Pre-pack insolvency arrangement or sale· Formal appointment (liquidation or voluntary administration)
· Engage the firm to handle the matter
07How do you evaluate what to do next?
· Get the businesses financials in order· Look at the structure of the business and start to develop a plan
· Use legal professional privilege to protect the discussions and analysis
· Explore all the options thoroughly· Take steps to ensure the business has sufficient working capital in the short term
· Ensure that there is optimal asset protection for the directors/owners in any plan