Chartered ONE Issue 31

Page 44

Professional Services | Financial

When should a business speak to an insolvency practitioner? A question that is on any businesses owners’ mind when facing financial and operational challenges that threaten the continuity of the business. Many assume that an insolvency practitioner should be contacted at the point the company becomes insolvent, but this is not what we would recommend – it is far more beneficial for an IP to be contacted much earlier.

T

ypically, we have two scenarios when we are contacted. Either the business is having problems and the management are aware of the cause OR, the business is having problems and the management are at a loss of the clear route cause; which is more often the case. Common problems we regularly see are: 1) Battling overdraft facility 2) Arrears in HMRC payments 3) S upplier issues affecting delivery of own products/services 4) Staffing issues e.g. can’t find staff or can’t hold onto staff 5) Balance sheet and/or turnover reduction 6) Client erosion All too often, multiple indicators are showing themselves and with the overwhelming pressures, the management are in the thick of trying to resolve the problems, convinced they can fix them

without external help, often patching up issues rather than implementing longerterm fixes. Current Challenge An insolvency outlook report by Atradius(1) forecasts business failure rates will increase by 10% this year in Britain. External influences and economic change can often be the final blow for a business that has already been struggling. There are many businesses across the UK which have been ‘surviving’ rather than thriving and one small change such as an increase in interest rates can send them over the edge. In light of growing challenges, it is important that companies act with speed if the owners/Directors identify problems in the business; before the challenges become too big. Often, when we are engaged earlier, there are likely to be more options to rescue a

business rather than implement an insolvency process. We want to be working with Stephen Berry, businesses Partner at Opus as early as possible so that we can help them with solutions to recover their business rather than taking them down the insolvency route. This is where we can best support the management team. As well as recommending and implementing known and tried methods to help the business, we have a number of contacts who can help the struggling business if a new viable plan can be identified. For more information about our services, please call us on 0151 705 9115, email liverpool@opusllp.com or visit the website www.opusllp.com.

1. https://www.cityam.com/global-insolvency-rates-tipped-to-reach-10-per-cent-in-the-uk/

RESTRUCTURING & INSOLVENCY

Taking the Stress out of Distress At the point a business is in distress, the business owners and/or Directors need support from people they can trust, that are visible and readily contactable. For your clients, we know that means not only having people who understand the nature of their work, but also the local business market. Opus is a business advisory, restructuring, insolvency and exit management practice. The Partners are focused on commercially driven results and take a proactive approach towards tackling business challenges with an assurance of confidentiality. 44

Chartered One - Winter 2019 Advert - Opus 02-131119.indd 1

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0151 705 9115 liverpool@opusllp.com www.opusllp.com twitter.com/opus_llp linkedin.com/company/opus-llp/

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ICAEW - INFORMATION HUBS

1min
page 45

ANDY BOUNDS - CHRISTMAS QUIZ

3min
pages 42-43

OPUS

3min
page 44

DSG - OWNERS OF CRYPTOASSETS ASKED TO CONSIDER CGT

3min
pages 30-31

LIVERPOOL SOCIETY OF CHARTERED ACCOUNTANTS CELEBRATE NEWLY- QUALIFIED ACCOUNTANCY TALENT

3min
pages 32-39

ANDREW LLOYD - DO PEOPLE REALLY WANT TAX CUTS IF THAT MEANS POORER PUBLIC SERVICES?

2min
pages 26-27

JAN MCCORD - HOW LOCKDOWN CHANGED MY LIFE

3min
page 25

DSG -UK BUDGET – AUTUMN 2021 A STRONGER ECONOMY FOR THE BRITISH PEOPLE

3min
pages 40-41

THE CHARTERED ONE BIG INTERVIEW NIGEL LANCELEY

4min
pages 22-24

LIVERPOOL SOCIETY OF CHARTERED ACCOUNTANTS – EQUALITY, DIVERSITY AND INCLUSION

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page 20

CHRIS WAINWRIGHT GENTLEMEN I GIVE YOU...

2min
pages 18-19

SMARTVAULT

2min
pages 16-17

DSG - SOCIAL CARE LEVY AND STATE PENSION BLOCK

2min
page 12

DSG -REDROW FOUNDER KEYNOTE SPEAKER AT LATEST DSG SPONSORED IOD EVENT

1min
page 13

NORTH WEST BUSINESSES OPTIMISTIC FOLLOWING CHALLENGES OF 2021

2min
page 14

DAVID CRADDOCK

9min
pages 9-11

ICAEW AND CIPFA - EXPLORING POTENTIAL FOR CLOSER WORKING

1min
page 15

REFLECTIONS FROM OUR EDITOR

1min
page 5

COODEN TAX CONSULTING ARE WE THER YET?

3min
pages 6-7

CHESTER TOWN MEETINGS

1min
page 2
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