A tool to save the business?

This part of our website shows where liquidation can be used to save some or all of a business and jobs, rather than as a mere tool for closing everything down.

• The most important thing to remember is ‘the company‘ and ‘the business and assets‘ are not one and the same thing.  The company is the legal ‘shell’ in which the business and assets sit for convenience;
• Quite often directors come to us complaining that the way in which the business has developed is such that they no longer have control, it now controls them, rather than them it.  Liquidation can reverse this, even if it does mean downsizing to what the business was 10, 15, 20 years ago;
• Putting the company into liquidation wipes off its debts.  Unless the business is dealt with somehow beforehand, liquidation will also kill the business – that’s why liquidation has got such a bad name.  However it is possible to protect some or all of the business and assets if they are transferred out of the company prior to liquidation and put into a ‘clean company’.  Some time afterwards the ‘old shell’ company is put into liquidation to write off its debts;
• It’s absolutely essential that everything about the transfer of the business and assets is conducted properly;
• The transfer can be to someone unconnected to the business, such as a buyer found using our Business Resuscitation Programme.  We are rather proud of this unique tool, which is purposely designed to retain wealth and protect jobs in the Black Country.  Alternatively, the transfer could be to a company in which the existing directors have an interest.  If the latter, read the page on the issues facing such phoenix businesses;
• As the transfer will take place at a time when the company is insolvent and there’s every chance that creditors won’t be paid, it has to be done for all the right reasons, at the right price and on the right terms, if it isn’t to be upset by the liquidator some time down the line.  This is not something you can do yourself.  You need our help;
• We see our reputation as being on the line when we get involved with a company in this way.  We will not allow ourselves to be used by the directors in somehow ripping off creditors.  We will however help where there is a business to save, and the business owner and directors are trustworthy and either unlucky or willing to make the changes necessary to make the business a success in the future.

If you believe your business is worthwhile saving despite its problems, even if there’s only a goldn nugget in it, why not give us a call?