CORPORATE SERVICES - OTHER
Corporate and Business Restructuring
Corporate and Business Restructuring may be undertaken on a formal or informal basis, depending on the financial circumstances existing at the time. If a business is experiencing severe cash flow problems, it is often necessary to undertake a formal appointment such as Voluntary Administration to suspend creditors’ claims against the company while restructuring options are considered and implemented. This can also occur for individuals and partnerships under part X of the Bankruptcy Act.
Restructuring options are extremely varied and may include dealing with issues such as:
- review and replacement of existing management;
- identification of surplus assets;
- analysis of business operations to identify inefficiencies and better business practices;
- employee issues, including inefficiency and identification of surplus staff;
- conversion of creditors debt to equity;
- disposal or closure of non-performing business sectors or products;
- implementation of sound financial controls including credit policies, debt collections procedures, reporting, etc;
- assessment of asset protection strategies to minimise risk to trading assets and the assets of the business owners;
- analysis of merger, acquisition or disposal options;
- identification and assessment of potential legal risks; and
- refinancing options.
Corporate and Business Restructuring options can often be considered without the need for a formal insolvency appointment. This will be dependent on the financial circumstances at the time. In many instances the restructuring options should be considered before a business experiences financial difficulties, to ensure the business is operating efficiently and maximising profits, while at the same time maximising asset protection strategies.
Often business owners believe their business is operating at maximum efficiency, but lack the independence to conduct a fair assessment of the issues. This is where WA Insolvency Solutions can provide independent analysis and work through the issues with owners and management to identify and implement strategies for business improvement.
Security and Pre-Lending Reviews
WA Insolvency Solutions has considerable experience in conducting Security and Pre-Lending Reviews. We understand what secured creditors are looking for. We rapidly identify the secured assets or assets to be secured, their value and realisation costs, and also identify any other costs or preferential entitlements that may impact on the financial return to the secured creditor.
Our reports are concise and accurate, and produced in a timely manner. Apart from identifying the secured asset position, we will also conduct an assessment of the solvency and operating efficiency and profitability of the client, if that is requested by the secured creditor. In many instances we have conducted assessments to identify if financial reporting is accurate, especially as it relates to completeness in the balance sheet in terms of full disclosure of all liabilities, and fair disclosure of asset values, particularly debtors and trading stock.
Investigative Reports
WA Insolvency Solutions have undertaken numerous different types of Investigative Reports. The reports are often requested to assist in resolving partnership and business disputes. In many instances the investigation will require:
- reconstruction of financial records to establish how business assets and funds have been disposed of;
- tracing of payments;
- an analysis of how losses arose or the extent of profits generated;
- assessment of the receivables ledger to determine the realistic value of the receivables;
- trading stock analysis to determine its fair value, taking into account issues such as obsolescence, carrying values, and ownership issues such as retention of title by suppliers.
Our Investigative Reports are sought by a variety of end users including financiers, solicitors and business managers and owners. They provide an independent view on specific issues as requested by the client.