One example of positive restructuring is to enter into a CVA – Company Voluntary Arrangement. In simple terms, a CVA allows you to ring fence all unsecured creditors into one pot. You then repay the creditors over an agreed period of time (usually 3-5 years). Whilst creditors will not exactly be happy with the idea of such a long repayment, almost all CVA proposals are accepted. Your creditors would rather repayment over a long period than not at all.

CVA’s offer real protection from creditors. They also should provide an immediate boost of business finance. If constructed properly, they can be the solution to your cashflow problems and can mean avoiding business insolvency.

Many commentators have been critical of such schemes pointing to a high failure rate and ultimate insolvency.  It is true that, having entered into a CVA, if the business does not change in any way, it is likely that the same problems will re-appear at a later date resulting in business insolvency.

At Turnaround Funding, and through our partners, we can talk through these issues, and advise on practical ways to ensure future success post CVA. These could be very simple steps; it could mean the introduction of business finance; or the changes to how the financial side of the business is run.

Talk to us today.

Restructuring within a business usually means making fundamental changes internally. Redundancies feature high on this list, changing budgets, sales and marketing strategies and so forth. All of which have a place, particularly in these challenging times. Ensuring the survival of the business is paramount.

Investment can also make a huge difference to the business. Not only will new money allow you to focus on driving the business forwards instead of constant fire fighting, it will also allow you to take advantage of new opportunities. Your competitors will be feeling the pressure too, and if you are well financed you may be able to consider acquisitions.

Cash is King, never more so than in recession.

In addition to new business finance, investors bring a wealth of experience to any business in which they invest. All turnaround investors have run their own businesses before and have usually exited at the right time with maximum return. They can help you achieve the same position.

Talk to us today and arrange an appointment to discuss how investors may be able to help your business and avoid business insolvency.

	Business Type:		Recruitment Company
	Location:		London
	investment on completion:		£100,000
	Restructuring:		Successfully Completed
			The company had achieved some dramatic growth, for example, from year 1 to year 2 the growth achieved had been 4,000%. The management of this growth was being handled but coupled with some bad tax advice on the payment to sub-contractors meant that the company was in serious deficit with the Inland Revenue. It was initially thought that the Inland Revenue would look for the shortfall from the sub-contractors. Beer & Young therefore took on the assignment on this basis. Beer & Young worked closely with the company and introduced four new potential investors within the first month of this assignment. There were several interested parties awaiting a ruling from the Inland Revenue.  The ruling went against the company and there was no alternative but to seek to the services of an Insolvency Practitioner who advised a Pre-Packaged Administration. Beer & Young helped to manage this process, discussed the options with potential investors and within eight weeks from the initial engagement had brought together all parties, advised on the set up of newco, arranged invoice discounting and attracted new investment of business finance for a minority share holding of only 25% in the new company. The business has benefited from a seamless transition, is now well capitalised with external investment and has the retention of valuable clients and staff.
	Business Type:		Garden Centre & Nursery
	Location:		Surrey
	Restructuring:		CVA successfully completed
			In 2006 our clients acquired a run-down garden nursery with the intention of converting it into a fully fledged garden centre offering the public plants and shrubs from the Nursery plus a wide range of other products. This required substantial improvements to the site including construction of a shop and display areas as well as provision of mains services. Our clients had budgeted for this. What they did not plan for was the fact that it took over 12 months to get the mains supplies on-site. This led to substantial additional costs resulting in a serious adverse effect on revenue. This in turn caused delays in planned development of the site. By mid-2008 our clients had not only used up their own capital resources, but had started to come under pressure from their bank to reduce their borrowings. In addition they had a significant level of other creditors. At this stage they approached Beer & Young with a request for assistance. Having considered the options available, we agreed with our client that, before attempting to find investors, it would be sensible to afford the business a degree of protection from existing creditors by setting up a Company Voluntary Arrangement (CVA). This we did successfully at the beginning of January 2009, using the services of Antony Batty & Co who acted as nominee and is now supervisor to the CVA. We are now awaiting instruction to move to the next phase, which is to find the investors to achieve their longer term goals.
	Business Type:		Leisure club
	Location:		Midlands
	Restructuring:		CVA Successfully completed
			The directors of this leisure club engaged us as they were very concerned by the major cash flow pressure affecting their business. They had invested heavily in the company and initiated a robust new business plan to develop the club. However, they inherited significant historic liabilities that had built up prior to their involvement and this was putting pressure on cash resources. We reviewed the various options with them and they elected to propose a Company Voluntary Arrangement (CVA) to ‘ring fence’ the unsecured creditors. We prepared the necessary documentation and we are pleased to report that the proposal was formally agreed by the creditors in early February 2008.