Insolvency: Turnaround and formal arrangements
Formal arrangements provide an effective strategy but will require the help of a turnaround specialist.
Key points:
- Analyse the business to identify which areas have underperformed
- Write a strategic plan for recovery to cover a 12 month period
- Keep major creditors informed of the situation
- Constantly monitor and review the plan to adapt to circumstances
- Rule nothing out – look at all options if the required improvements are not happening
Remember, creditors would rather accept a percentage of the debt than to receive nothing through insolvency.
