Business Restructure
Voscap is an independent business turnaround and recovery firm with a commitment to finding the right solutions for businesses with financial challenges.
In stressful times, it’s not always easy to see the road ahead and the daily financial pressure could seem insurmountable. Our initial free appraisals and assessments provide clarity and support when you need it most.
When a time-critical business rescue is needed, we will focus on helping you turn a challenging situation into the best possible outcome.
Recovery support
If your business is looking to redress underperformance, overcome financial problems or gear up to maximise growth potential, our Turnaround specialist team here at Voscap can help identify the most integral part of your business and maximise its potential.
Turnaround can include working alongside existing management to deliver a reduction in overheads, carry out system reviews, identify new routes to market, deal with general management issues and implement a financial restructuring plan.
Financial Appraisal
Raising capital to stabilise or grow your business can be a difficult task and the effects of investment need to be carefully assessed before any funding is raised. Here at Voscap we can help source finance and provide the appropriate knowledge and expertise specifically tailored to your business.
We will take you through the entire appraisal process and can also tap into our pool of specific finance experts depending upon your circumstances.
Administration / Pre-Packs
Administration
Administration is a formal insolvency procedure aimed at rescuing a company in financial distress.
The company will have protection from its creditors whilst the proposed Administrator, a Licensed Insolvency Practitioner, reviews and considers the company’s financial position with a view of saving the business as a going concern.
The proposed Administrator may have to trade the company in administration to achieve the best outcome and will often call on the assistance of the Directors, Shareholders, and key employees to assist in the process.
The most common outcome results in the business being sold as a going concern to a new entity. An independent agent is appointed who will assess and value the business and carry out a discreet marketing exercise.
Directors of the Company also get the opportunity to purchase the business. In fact, we often find that new investors like to retain the services of key personnel who are essential to preserving the goodwill.
Pre-Packs
Pre-packaged Administration (also known as a Pre-Pack) follows the same principle as detailed above however the main difference is that the proposed Administrator will in almost every case effect a sale immediately on, or shortly after his appointment.
The advantage of a pre-pack is the seamless transition of the business from the old company to the new company without impacting on the continuity of business operations.
It also preserves the value of assets (particularly ‘work in progress’) and debtors which often become more difficult to realise following the appointment of an administrator
Safeguards have been introduced as historically creditors may not have been aware of the sale until after it had happened. We can advise on how to ensure that all the correct steps are taken and that the process is completed smoothly.
The key is to deal with the financial affairs in a timely manner to determine the best option available and avoid any adverse action against the company.
Partnership Administration order
This is similar in many ways to the Administration procedure for a limited company.
An Administrator, a Licensed Insolvency Practitioner, reviews and considers the partnership’s financial position to decide whether it can be rescued.
The administrator will take control of the affairs of the business and all actions against the partnership by creditors are frozen.
Once you have applied for a Partnership Administration Order, the court would grant the Order where it is satisfied that the partnership is unable to pay its debts and where one of the following events would be achieved:
The continued trading of the partnership as a going concern
Agreement to a Partnership Voluntary Arrangement (PVA) under which the debt can be restructured
Greater asset realisation than would be possible under a winding-up action
The administrator works with the partnership on an agreed plan or a pre-pack to restructure the debt so that the business can be handed back to the partners once a successful restructuring has taken place.
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Company Voluntary Arrangement (CVA)
If you have a viable and profitable business but have now fallen into debt and are no longer able to manage your cash flow, then you could consider a Company Voluntary Arrangement (CVA).
In summary, you would ask your creditors to vote on a proposal that allows your company to continue trading on the basis it will provide a better return to creditors than if the company was forced into liquidation.
If the proposal is approved, the current debts are frozen, and the plan is administered by the Supervisor of the CVA.
The CVA is a legally binding contract between the company and its creditors and requires a majority of 75% or more in value of the company’s unsecured creditors to vote in favour. Our experts here at Voscap will ensure that the proposal is fit, fair and viable before it is issued for consideration.
The CVA can also be an opportunity to bring in new capital, introduce new skills, reduce overheads, and revise operational efficiency.
Partnership Voluntary Arrangement
A Partnership Voluntary Arrangement (PVA) is a formal insolvency procedure that enables a partnership business to make a proposal to its creditors which will give them a better return than they would get if it were placed into liquidation.
It is used where there is a viable, profitable business that has been unable to manage its cash flow and requires time to breathe to be able to continue trading.
If the PVA proposal is approved, the current debts are frozen, and the plan is administered by the Supervisor of the PVA. It is a legally binding contract between the business and its creditors and can also help avoid personal bankruptcy for the partners.
The key to a successful PVA is to work closely with the partners and plan creatively and realistically through a collaborative approach and prepare the most viable and feasible proposal for all parties involved.
