Published: 04/08/2021 By Jane PriceIf you missed parts 1-5 of our Decline and Recovery curve blogs see links below
Having acted in time and averted a crisis, an IP or other advisers can work towards a longer-term plan to put the business on a more sustainable footing. Depending on the ownership model and actions taken to date, this may mean bringing in a new senior management team.
But if crisis management is about making sure the business avoids imminent collapse, this stabilisation phase is about making sure any changes made and its operational approach create a sustainable model for all concerned parties.
In many ways this stage is similar to the launch of the business. If the right decisions are made at the start, with the right financial controls and systems being in place, it is less likely a business will end up in trouble.
This stabilisation phase is about renewal and building new foundations for a business, this time with a more financially sustainable approach.
At this point an IP should be able to help the business begin to see the other side of the crisis. Of course, if the company has gone into liquidation there will be no way back. But if the company entered into a Company Voluntary Arrangement (CVA) it may be possible for it to return to more normal trading conditions.
The same may be true of some pre-pack arrangements. As evidence begins to gather to show the business is beginning to get back on its feet, it may be possible to re-engage with creditors and lenders to start to get the business operating at a normal level for the future.
As always the sooner you seek advice the more options will be available to you, call and speak to one of our qualified insolvency practitioners who have seen all situations and have helped many people in a similar situation to yourself.
Call 020 8661 7878 or email firstname.lastname@example.org
Decline and Recovery Curve - Part 1
Decline and Recovery Curve - Part 2
Decline and Recovery Curve - Part 3
Decline and Recovery Curve - Part 4
Decline and Recovery Curve - Part 5