Help for Directors

All businesses face the occasional financial crisis but when they become a critical problem you need to know exactly where you stand. In our help for directors section, you will find specific information for answering your questions around if you are insolvent, what you need to do if you are and how it will affect you.

Creditors Voluntary Liquidation

What is known as Creditors Voluntary Liquidation is the process that most businesses must go through if they are insolvent. It can be a difficult time for everyone involved, so we have created this special section of our site to give you the important facts about CVLs in a clear and down to earth way so you can see where you stand.

Members Voluntary Liquidation

This is when your company is still solvent, but you (and your fellow directors) decide it is time to call it a day and retire or move on to the next stage of your lives.  With an MVL, you will release the assets and use these funds to pay off the creditors before returning the remaining funds to the shareholders.

Exit strategies

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Exit strategies

What is a Business Exit Strategy?

Essentially, this would be your strategic plan to sell your ownership of your company to investors or to another company. An Exit Strategy provides a way for you to reduce or liquidate your stake in your business. With our support, you can plan for your exit strategically, increasing your sale price.

How do we carry out our role?

  1. Careful preparation of legitimate accounts - A potential buyer will want to see at least two years of clean, reliable financial records.  We’ll work with your accountant to prepare all the figures you need, making sure that your bookkeeping processes are all they need to be. We’ll also work with you to legitimately show a true picture of your company’s affairs.
  2. Make yourself redundant - If your business can’t survive without you, no-one will buy it.  We’ll help you to scale back your involvement - to be less available to clients and customers. Can you identify a management team within your organisation or do you want to employ one?
  3. Improve your processes - We’ll help you to develop efficient processes in your business. Having sound processes in place will give potential buyers comfort that everything works smoothly.
  4. Create a ‘how-to’ manual - We’ll advise you with the preparation of a manual that’s a step-by-step guide for every aspect of your business processes.  A new owner would be able to step in and immediately pick up the reins.
  5. Generate a guideline business valuation - Although you won’t know the precise value of your business until it’s sold, it’s always useful to have in your mind an approximate selling price. Having this price will also help you decide whether selling is the best step.  You might decide to take an alternative option, such as a Members Voluntary Liquidation.
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Are you concerned for the future of your business? Have you considered an Exit Strategy? We’re here to help with clear, straightforward guidance.

Call us on 0116 2325117 (Leicester), 01926 671891 (Warwick), 02476 017639 (Coventry), 01604 263179 (Northampton) or email us on info@smartbusinessrecovery.co.uk