This week we begin a series of blogs that will explain some of the options available to struggling or distressed limited companies. Take a look at last week’s blog if you’re unsure whether you or your client’s limited company falls under the category of insolvent. There’s a series of short tests that can establish if help and advice is needed.
If you discover that your company is insolvent or indeed showing signs that it could be heading in that direction, then one of the first things that should be done is a business health check.
A health check can help to establish not only where the problems lie but ways to try and solve them before they get out of control and unmanageable. It will allow you to assess both the strengths and weaknesses of the company and identify areas for change or improvement so that you can create a clear plan of action on how to move forward.
A health check would normally look at the following areas of the business:
- Assessing the business performance and strategy
- Looking at cashflow management
- Analysing sales activity
- Establishing if you are utilising your assets
- Marketing and competition analysis
- Looking at the plans for the future of the company
It’s best to go through these points with a financial advisor and any initial discussion would be provided free of charge. The health check should outline any areas for improvement and any options the company might have available to it from simple restructuring and turnaround advice right up to liquidation. Every situation is different and the sooner advice is sought, the more options your company will have available to it.
If a business health check is something that you think your company would benefit from or if you simply have questions then remember that Focus Insolvency Group are licensed insolvency practitioners and financial advisors and are here to offer you impartial advice and guidance.
Next time we will be looking at turnaround advice that can help to improve your company’s survival chances and help to prevent formal insolvency by getting it back on track.