At BCR Advisory, we have an experienced team who know how business works and understand the metrics which drive profitability and success. We can also see the key elements which may steer a business to failure. As a result, we can intervene before these weaknesses take hold, we are experienced in addressing these problems and returning the business to profitability.
Our approach is fundamentally centred on working with the client company to restore the business in a way that works for them. That involves development of a plan with the client, then working through the agreed programme in consultation with the company’s directors, employees, financiers and other key stakeholders.
BCR’s aim is to re-engineer the business, rather than merely change its Balance Sheet.
Depending on the project, the restructure can be done informally with the company. A formal appointment may be required – generally via a Voluntary Administration and Deed of Company Arrangement.
Voluntary Administrations are the most common mechanism to restructure a company’s finances where it is financially distressed.
If a business is viable and can be returned to good financial health, the Voluntary Administration process allows time for us to reorganise its finances and business, then return the company back to its Directors. That is usually achieved through a Deed of Company Arrangement. The intervention of Administrators, with protection for the company to enable the business to be assessed and a restructure plan formulated, is a key feature which offers breathing space for the business.
During the Voluntary Administration, the restructure is developed with the directors and other key interests.
The business continues where it is viable. While it is trading under our control, we develop a strategy for its financial restructuring by assessing key business elements, then develop a plan for its future. The Voluntary Administration enables the company’s restructure with creditors involved in the process rather than being handed a fait accompli which they have had no influence in.
The Deed of Company Arrangement (DOCA) is a formal agreement between a company and its creditors. It is a formal mechanism to implement the restructure with attendant compromise of the Company’s debts. A DOCA is tailored to suit the company and its specific circumstances.
We can also incorporate a creditors’ trust into a DOCA to accelerate a company’s exit from administration. A creditors’ trust is an independent arrangement where the creditors receive rights as beneficiaries of the trust in exchange for their claims against the company. This enables the immediate return the company to solvency and technical release from external administration. Such a technique can be crucial to enable ongoing trading, which may otherwise be compromised by contractual or regulatory impediments.
BCR Advisory has extensive experience in achieving successful recovery outcomes through the Voluntary Administration and DOCA process across many industries.
Informal turnaround management services
BCR Advisory advises financially distressed businesses to help them avoid terminal insolvency. We also assist non-distressed businesses to implement specific changes to their operations, on terms agreed with management.
We carry out comprehensive assessments of a business’s market position, critical issues, opportunities and threats. This may be expanded to consider issues relevant to the business owners themselves, its financiers and other key stakeholders.
In all cases, terms of the engagement are agreed with the company or the engaging party (if different) and agreed objectives are settled according to their needs.
We have many years’ collective experience in businesses of all types and sizes, as both reconstruction professionals and managing those businesses commercially. We’re therefore ideally placed to combine our knowledge and expertise to assist decision makers obtain the insight they are seeking into the business and its operating environment.