Our Services
Corporate Restructuring & Turnaround Strategies
We have more than 2 decades of experience advising businesses large and small to reorganise their business as part of a turnaround.
Specialists in reconstruction and turnaround.
We can act for solvent enterprises, large and small, to reorganise their corporate structures. This commonly becomes necessary in larger corporate structures where a subsidiary within a corporate group is excess to the requirements of that group.
This is usually because the subsidiary was incorporated for a specific purpose which has subsequently been fulfilled, or because the group structure has become unwieldy and burdened with unnecessary compliance requirements.
At the other end of the scale, the owners of a successful business may require us to undertake the orderly winding-up of the affairs of the business, including the equitable distribution of assets among shareholders.
We provide advice when a business needs it (not just when advice is asked for) in a clear, understandable and efficient form.
We establish frank, sincere, one-on-one relationships with our clients, so you can be entirely confident that advice offered to you will always be tailored for your business, and with your business’s best interests at heart.
- Prelending Reviews
- Annual Independent Business Review (IBR)
- Due Diligence and Business Valuation
- Business Plan and Strategic Planning
- Cash and Working Capital Management
- Business Reporting and Performance
- Restructuring and Turnaround Management
- Succession and Exit Strategies
- Specialist Services
- Safe Harbour Advisors
Turnaround Strategies
Where we consider that a company’s problems can be solved, we prepare a Turnaround Strategy for it. This is in essence a plan for the future of the company which identifies and documents the things the company needs to do and the conditions it needs to satisfy in order to keep trading and to return to profitability.
Businesses in financial or management distress face a unique set of challenges. Achieving a turnaround or renewal of the business is challenging because multiple aspects of the entity must be addressed concurrently. Sufficient cash flow to ensure short-term survival is essential. However, simultaneously various internal and external stakeholders required management and communication and a process must be established to identify and improve the more viable parts of the entity to ensure a medium return to normal business operations.
The underlying causes of liquidity problems or trading losses can be complex and are not always readily apparent, particularly to incumbent management. Companies that are able to recognise problems early have more time and flexibility to implement appropriate strategies. Internal denial or a lack of urgency often hinders the ability of businesses to effect necessary changes in a timely manner.
Significantly, the recent changes to Australian bankruptcy & insolvency laws implemented in 2017 incorporating the new ‘Safe Harbour’ provisions seek to reduce the risk for a board engaged in a turnaround strategy. We have actively engaged with the Australian Federal Government and the Australian Restructuring, Insolvency and Turnaround Association to be well placed to advise on the opportunities that these changes create.
For small businesses, there is also the option of a Small Business Restructure as outlined here.
Safe Harbour
A simplified approach to turning around your business while protecting directors from personal liability for insolvent trading.
In September 2017, the Federal Government introduced new laws to encourage directors to turn around distressed businesses and protect them throughout the process.
A proactive approach is a key to a successful turnaround and directors should seek professional advice early to ensure they are protected. In order to qualify for the protection of safe harbour, there are a number of criteria that must be met.
- Understanding the financial position of the Company – to qualify for safe harbour the company’s books and records are required to be maintained and provide an accurate representation of the Company’s financial position consistent with the size and nature of the company. Directors are required to have a clear understanding of the financial position of the Company.
- Employee and Statutory Obligations – All employee obligations, including superannuation, must be paid as and when they fall due. In addition, all tax reporting requirements must be adhered to, including lodgement of BAS, IAS and returns;
- Better Outcome – The course of action developed must be reasonably likely to result in a better outcome for the company when compared to the immediate appointment of an external administrator;
- Expert Advice – The Director must have obtained advice on the turnaround course of action from an appropriately qualified entity. While there is no definition of a qualified entity within the legislation, we believe the advisor should possess appropriate qualifications, expertise and demonstrable experience in turnaround and insolvency and be a professional member of a turnaround accrediting organisation such as ARITA or TMA.
