Business Turnaround Webinar
How to go about reviving your company.
With the sudden change in the business environment the previous ways of operating may no longer be effective. Don’t wait until your company’s is severely financially stressed to take action to change things. Join Derek to understand the steps needed to turn your company around.
Coming Soon
What is being covered?
When is a turnaround needed?
What are the objectives of a business turnaround?
What processes are followed?
How can a turnaround consultant/practitioner help?
When is the process considered complete?
Coming Soon
Book Consultation
Not sure if your company should commit to the process? Not sure how to start the process? Need a business turnaround consultant? Book a confidential online consultation with Derek so he can better understand your company’s circumstances and assist you with your company’s turnround.
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Business Assurance
Minimise your risk
While business may be about risk and reward; wherever possible you should look to mitigating those risks as far as is possible – this is why you need to consider Business Assurance.
Business assurance refers to a several interventions that may implemented to provide protection against some of the inherent risks a business is faced with across the various areas of operation such as below.
Succession planning
Credit insurance
Business interruption
Retention of staff
Replacement of Assets
The implementation of a business assurance plan not only provides certainty but also liquidity to ensure that your business is able to overcome some of the potential critical risks faced.
Business assurance, especially in smaller companies, can also be used to give you business a competitive advantage.
Succession planning
Buy and Sell
Many businesses have two or more owners whose interest in the business represents a significant portion of their wealth, if not their largest asset. Often there in no plan is place for that owner’s estate/beneficiaries to be able to realise that value should they be unable to continue in the business owing to death or disability as the remaining shareholders may not have necessary cash to purchase that owners interest.
Through a “buy and sell” arrangement the shareholders can ensure that the business continues unhindered and avoid unintended situations
Keyman Insurance
In any business there are inevitably certain key individuals with specialist skills or knowledge.
If such an individual were to die or become disabled it would be a significant cost the company. By proper planning using Keyman insurance this risk can be mitigated and ensure that such an event is merely a hiccup and not a disaster.
Credit insurance
Contingency liability protection
An owner of a business, especially in its formative years, you are often required to stand surety for any loans or other credit facilities the business may secure. Should you die these liabilities are transferred to your estate which could have a devastating effect on your estate planning.
By putting contingency liability protection in place, you can sleep with the peace of mind that this exposure is suitably managed and that your beneficiaries will not be impacted.
Credit Loan Insurance
It is often said that a new company is like a new-born baby as it needs feeding every few hours. Shareholders often commit a lot of their wealth that they have managed to build up into their new company in the form of a shareholder’s loan.
Should a shareholder die or become disabled the loan will be called up; however, if the business does not have the available cash to settle the loan it will be forced to sell some of its assets and it may even result in the executor of an estate putting the company into liquidation. These issues may be resolved by putting in place appropriate credit loan insurance.
Business interruption
Company
The life blood of any business is the income that it generates. The disability of the business owner will have a detrimental impact on the short-term income flows and the potential the long-term sustainability of the business, if the business cannot maintain its business overheads.
Business overhead protection is available to mitigate this risk.
Personal
In additional to protecting the company the business owner can insure their own life with through income protection to replace any income lost during their permanent disability and ensure that they continue to receive a salary until the age of 70.
Retention of Staff
The retention of key staff poses a challenge for most companies, especially smaller or medium sized business. Two effective ways of being able to retain staff and avoid the cost of staff turnover are:
Preferred compensation scheme
A preferred compensation scheme may be implemented for selected/key employees who receive tax-free bonuses every 5 years.
Corporate retirement annuity
Owing to the cost of setting up a corporate retirement etc. many companies leave it up to their employees to make their own retirement provisions. The disadvantage of this approach is that the employees do not have a sense that the company is invested in their future well-being and many employees make insufficient retirement provision.
The introduction of a Corporate retirement annuity can address these issues.
Asset Replacement Provision
A business that requires expensive capital assets to be able to generate an income faces potential challenges when that equipment needs to be replaced or the operations need to be expanded. If the business does not plan its cashflows properly it is left having to approach financial institutions for loan finance with the inevitable security and surety requirements which significantly increases the business risk.
By investing in an endowment policy, a sinking fund policy or unit trusts (i.e. forced savings), a business can build up capital to assist with the purchase of capital equipment and avoid having to secure third party funding.
Business Assurance Services
We offer a comprehensive range of business assurance solutions backed up with
- Any legal documentation and agreements necessary to support these solutions
- The tax implications of implementing any of these solutions
Our business assurance policies are underwritten through Momentum, an industry leader in offering business assurance solutions.
Webinar
COVID 19 was a stark reminder of some of the inherent risks your business faces. Get an overview as to how you can mitigate against these risks and even use these tools as an competitive advantage.
Business Assurance Articles
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Business Turnaround
Make changes to your business on your terms
Business turnaround can be done on a formal or compulsory basis, such as business rescue, or on an informal basis where a company is either looking to avoid having to be subjected to a compulsory turnaround or to improve its financial performance.
While the process followed in these scenarios is similar, the fundamental difference is that in a compulsory turnaround the company is placed under the control of a third person to whom the company’s directors and management are required to report to.
With the unprecedented turmoil being experienced across the world, it is probable that most companies will have to review their business operations.
On a positive note, this environment also provides an opportunity for companies to better understand their core business, how their profit is generated and what areas or functions are essential.
Business Turnaround Services
With over 50 years’ experience across various industries we are passionate about helping businesses survive and thrive.
If you would like assistance with reviewing or turning around your operations, please reach out to us by completing the form below and we will gladly contact you.
Webinar
With the sudden change in the business environment the previous ways of operating may no longer be effective. Don’t wait until your company’s is severely financially stressed to take action to change things.
Business Turnaround Articles
Get help for your Business - Enquire Today
Fill in the below form and we will get back to you regarding your business enquiry!
Business Rescue Webinar
Understanding the business rescue process.
The current environment has elevated the profile of business rescue as, unfortunately, many companies will probably have to subject themselves to this process. Join Derek to understand what is involved and how it is able to benefit your company.
What is being covered?
How is the process started
What protection does the company get
Who can be a business practitioner
What does the business practitioner do
What rights do the parties have in business rescue
What is the business rescue plan
How does the process end
Book Consultation
Not sure if your company should apply for business rescue? Not sure how to start the process? Need a business rescue practitioner? Book a confidential online consultation with Derek so he can better understand your company’s circumstances and assist you with regard to business rescue.
Want to do webinars like this?
Run live, hybrid and automated webinars!
We recommend using ClickMeeting as the most cost effective webinar platform that allows you to manage the functionality you need, the amount of attendees you want to host and the budget you have.
Create your own marketing and sales platform
Learn how to take your business online and use different platforms that integrate with each other that can provide your target audience with a seamless user experience while improving your reach and conversion rates.
Business Rescue
Our focus is to keep companies in business.
We are licensed Business Rescue Practitioners
In this unprecedented time businesses have probably never been more uncertain as to their continued existence. While, as a business owner or director, you will put your heart and soul into trying to keep the business from being liquidated, don’t let your determination and passion take you past a point where business rescue is no longer an option.
As soon as a business determines that it is reasonably unlikely that they will be able to pay their debts on time during the next 6 months the Companies Act provides that the Directors may voluntarily apply for business rescue. Typically, the sooner a company enters this process, the higher the chance of that company may be returned to solvency.
We are here to help you through this critical period.
Our Services
Business Rescue Practitioners
When appointed as Practitioner we implement the rescue requirements of Chapter 6 of the Companies Act which includes
- Adherence to the Companies Act process requirements
- Compilation of a comprehensive rescue plan
- A liquidation assessment
- Implementation of the rescue plan
Assessment
We assist companies to establish if business rescue is a viable option
Evaluation
We assist parties affected by rescue proceedings such as creditors with the evaluation of the plan to assist them in their decision-making process
What process is followed
The Companies Act also defines the business rescue process that is required to be followed.
Our “Guide to Business Rescue” explains the process in a bit more detail but very succinctly the following is relevant:
- The company must file and application with the CIPC and appoint a business rescue practitioner.
- Alternatively, on an application, the court may place a company in business rescue and a practitioner is appointed by the applicant.
- The practitioner assumes control of the company with the Board of Directors and the management reporting to the practitioner.
- There is a stay of any legal action by a creditor against the company.
- The practitioner must meet with the creditors and the employees.
- After 25 days the practitioner must produce a business rescue plan.
- The plan must then be voted on by the creditors and, if accepted, it proposals are implemented; however, if not the company is liquidated.
What else you need to know
Different companies are required to have different types of practitioners.
There are different categories of business rescue practitioners who are licensed with the Companies and Intellectual Property Commission (CIPC).
The Companies Act determines that the category of practitioner that is required to be appointed is determined by that company’s public interest score.
If you would more details on these categories and requirements, please go to our article “What Practitioner is Required”.
What is the timeframe of the rescue process
Business Rescue is conducted in a stressful environment where time is of the essence. The Companies Act outlines the process to be followed; however, in summary
- The practitioner is required to produce a plan within 25 days from their appointment (unless extended by agreement) and
- If the proceedings are not concluded after a period of 3 months the practitioner is required to report to the CIPC on a monthly basis thereafter.
For more details on the timetable please go to our article “What is the Business Timetable”
Webinar
The current environment has elevated the profile of business rescue as, unfortunately, many companies will probably have to subject themselves to this process. Attend this on-demand webinar and learn what is involved in this process and who is applicable.
Get help for your Business - Enquire Today
Fill in the below form and we will get back to you regarding your business enquiry!