Restructuring & turnaround
Business RestructuringFor Directors Whose Trade WorksBut Whose Balance Sheet Does Not
Where the business is fundamentally viable and the debt is not, restructuring can protect the trade, the staff and the customer relationships, provided it is done properly, valued independently and documented from the outset.
Free initial advice · Independent panel of auctioneers and valuers · Confidential · Lines open 8am to 6pm · We act for directors, not creditors
Business restructuring explained
A short explanation of how a properly run restructure protects a viable trade: and what puts a director at risk.
Restructuring done properly, or not at all
Restructuring has a reputation problem, largely because it is sometimes done badly. Done properly it is a legitimate, well-established route that preserves a viable trade and produces a better return for creditors than a fire sale. Done badly, assets moved cheaply, no valuations, no advice on record, it creates personal liability for the director who did it.
What this service is
An independent assessment of whether your business can be restructured, what that would involve, and what the risks are for you personally. We look at the trade, the asset base, the creditor profile, guarantees and the director's loan account, then set out the routes honestly, including the option of not restructuring at all.
Where a formal process forms part of the plan, we introduce you to licensed insolvency practitioners and stay alongside you throughout. We do not hold insolvency licences ourselves; our role is to make sure the director is properly advised before, during and after.
Who it is for
Directors of limited companies where the underlying business still works, customers, contracts, order book and skilled people are all there, but the debt load, a legacy liability or a single bad year has made the current structure unsustainable.
It is not for businesses with no viable trade. If the honest answer is that the market has gone, we will say so and talk to you about an orderly closure instead.
When it is needed
Before enforcement rather than after. The point at which restructuring is most effective is while assets are unencumbered by controlled goods agreements, while the bank account is operating, and while there is enough runway to obtain valuations and arrange funding properly.
Common triggers are a large contract loss, a downturn in orders, a legacy tax liability that cannot be cleared, a failed Time to Pay arrangement, or a single dispute that has swallowed the year's margin.
Why independent advice matters here
This is the area where director-side advice matters most, because the steps that protect a director and the steps that create liability can look superficially similar. Independent valuation, fair value paid, proper documentation and advice taken before rather than after are what separate the two.
We act on behalf of directors and investors. That means we tell you what a liquidator will look at later, and make sure the answer is already on the file.
What goes wrong when restructuring is handled badly
Almost every problem we see in this area comes from the same root cause: steps taken in the right order but without evidence, or in the wrong order entirely.
Transactions at an undervalue
Assets moved to a connected company for less than they are worth can be challenged and reversed, with the director personally pursued for the shortfall.
Preference payments
Paying one creditor ahead of others, particularly a connected party or a guaranteed facility, in the run-up to insolvency can be set aside and recovered.
No independent valuation
Without a defensible valuation from a credible source, even a fair price looks arbitrary when it is examined a year later.
Wrongful trading
Continuing to incur credit after the point where insolvent liquidation was unavoidable can result in a personal contribution order.
Restricted name provisions
Reusing a prohibited name after a liquidation without meeting one of the statutory exceptions is a criminal offence and carries personal liability for the new company's debts.
Guarantees crystallising
A restructure that leaves the guaranteed facility behind in the old company brings the guarantee into play. That has to be planned for, not discovered.
Mistakes we see directors make
- Moving assets first and taking advice afterwards
- Setting the price internally rather than obtaining an independent valuation
- Failing to check whether the intended trading name is a prohibited name
- Assuming personal guarantees fall away with the old company
- Leaving the director's loan account overdrawn and unaddressed
- Doing all of this without any written record of the advice taken
How we work with you
A defined sequence, so you always know what happens next and what is expected of you at each stage.
- 01
Free first call
We establish quickly whether the trade is genuinely viable and whether restructuring is even the right conversation.
- 02
Position review
Trade, assets, creditors, guarantees, leases, finance agreements and the loan account are reviewed together as one picture.
- 03
Options set out
Restructure, negotiate, or close in an orderly way; each with its cost, timescale and personal consequences stated plainly.
- 04
Valuation and execution
Where assets move, our panel of auctioneers and valuers, some RICS-associated depending on the case, values them independently so fair value is paid and evidenced.
- 05
Alongside you throughout
We introduce a licensed insolvency practitioner where one is needed and remain involved while the process runs.
What you get out of it
The trade survives
Customers, contracts and skilled staff are the hardest things to rebuild. A properly executed restructure is aimed squarely at keeping them.
Fair value, evidenced
Independent valuations mean the price paid for assets can be justified to any creditor, office-holder or court that later asks.
Personal risk mapped
Guarantees, the loan account, prohibited names and preference exposure are identified before anything moves, not after.
A better creditor outcome
A going-concern sale generally realises more than a break-up sale, which is why properly run restructures stand up to scrutiny.
An honest answer
If restructuring is not viable, we tell you at the first call rather than selling you a process you do not need.
Speed and availability
Lines are open 8am to 6pm, seven days a week, because restructuring windows tend to close quickly.
Restructuring in detail: routes, valuations and evidence
Restructuring is not one thing. The right route depends on the asset base, the creditor mix, whether funding is available and how much time there is before enforcement forces the issue.
The routes we assess
We work through these in order of intrusiveness, because the least disruptive route that actually solves the problem is almost always the right one.
- Informal negotiation and rescheduling with key creditors, where the shortfall is temporary
- Cost and contract restructuring, including exiting loss-making work and renegotiating leases
- Refinancing, including asset-based lending against plant, stock or debtors
- A formal arrangement with creditors where the trade can service a reduced, agreed liability
- A going-concern sale of the business and assets, funded independently and valued at arm's length
- An orderly liquidation with the viable elements acquired at fair value
Why valuation is the whole ballgame
Every legitimate restructure that involves assets changing hands stands or falls on the valuation. If the price paid is defensible, the transaction is defensible. If it is not, the director is exposed personally regardless of how good the commercial logic was.
We maintain our own panel of auctioneers and valuers, some of them RICS-associated depending on the nature of the assets. Valuations are obtained before a transaction, in writing, from a party with no interest in the outcome.
A worked example
A well-regarded Northampton fencing and groundwork contractor came to us unable to meet its tax liabilities after a downturn in orders. There were no personal guarantees in play, and the trade itself, reputation, crews, client relationships, was sound.
We reviewed the position, set out the options and worked with the director through a liquidation in which the assets were independently valued and purchased at fair value. The trade continued under a new structure and the business continues to grow and thrive. That outcome came from valuation discipline and taking advice before acting, not from anything clever.
Reputation and disputes as a restructuring problem
Not every restructure is driven by tax. An Oxford transport company approached us after being accused of fraud and theft by a finance company, having unknowingly bought plant machinery that was stolen and already financed to another company. We set out to prove they were the victims; their business was restored and lost contracts retrieved.
Where a dispute rather than the balance sheet is the threat, the restructuring answer is often containment and negotiation rather than a formal process at all.
What a liquidator will examine afterwards
Assume every step will be reviewed, because in a formal process it will be. Office-holders look at the timing of asset transfers, the price paid and how it was arrived at, payments made to connected parties, the state of the director's loan account, when the director first knew the company was in difficulty and what they did next.
The single most useful thing a director can produce at that point is evidence of independent advice taken at the time. That is a large part of what this service provides.
Where we advise
Our main office is near Alton in Hampshire, with further offices in Manchester, Leeds, Bradford and Birmingham and a registered office in Northampton. We advise directors nationwide, with the first conversation by phone or video and in-person meetings where they help.
Questions directors ask us about this
Is restructuring legal?
Yes, when it is done properly. The legitimacy turns on independent valuation, fair value being paid, proper documentation, compliance with restricted-name rules and advice taken before rather than after. Where those conditions are met it is a well-established route; where they are not, the director is exposed.
Can I buy the assets of my own company?
In defined circumstances, yes, provided the price is set by an independent valuation, fair value is actually paid, funding is properly evidenced and the restricted-name provisions are complied with. This is precisely the area where advice before acting matters most.
What is a prohibited name?
After a company goes into insolvent liquidation, its directors are restricted for five years from being involved in a business using the same or a similar name, unless a statutory exception applies. Breaching this is a criminal offence and creates personal liability for the new company's debts. We check this at the outset.
What happens to my personal guarantees?
They do not disappear with the old company. A guarantee is a separate contract between you and the lender, and a restructure can bring it into play. We identify every guarantee before anything moves so it can be planned around.
How much does the initial advice cost?
Nothing. The first consultation is free, confidential and carries no obligation.
How quickly can this happen?
It depends on the asset base and funding, but the first conversation is usually same-day and lines are open 8am to 6pm. Restructuring windows narrow once enforcement begins, so early contact makes a material difference.
Will my staff and customers find out?
Our involvement is entirely confidential and nothing is disclosed by us. A formal process itself becomes a matter of public record at the point it begins, and part of the planning is managing how and when that is communicated.
What if my business is not viable?
We will tell you. There is no benefit to us in taking a business through a restructure that will fail again in eighteen months, and an orderly closure is often the better answer.
Are you insolvency practitioners?
No. We are a director advisory firm acting for directors and investors, and we hold no insolvency licences. Where a formal process is required we introduce you to practitioners licensed under the Insolvency Act and remain alongside you throughout.
Do you cover my area?
We advise nationwide, with offices near Alton in Hampshire and in Manchester, Leeds, Bradford and Birmingham, and a registered office in Northampton.
Still not sure it applies to you?
Describe the situation in one call. If this is not the right service for you, we will say so and point you to the one that is.
0330 223 5754Free · Confidential · No obligation · Lines open 8am to 6pm, 7 days a week
Find out whether your business can be restructured
One free, confidential call establishes whether the trade is viable, what a restructure would involve and what it would mean for you personally, before enforcement makes the decision for you.
0330 223 575407770 666896- The initial conversation is genuinely free and carries no obligation
- Everything you tell us stays between us
- We are independent: we act for you, not for your creditors
Free, confidential and no obligation. Company insolvency and director advisory only; we do not advise on personal debt.