In today’s rapidly changing business environment, companies are finding themselves at risk of crumbling due to overwhelming financial pressure. More often than not, help is requested when it’s too late. Seeking outside assistance is left as a last resort because most people don’t want to admit they need help or simply won’t recognise the symptoms of a struggling business.
In Australia it isn’t a requirement for business owners to complete a course on how to be a director, despite many duties imposed on individuals who take on the role of a director. For example, Section 588G of the Corporations Act, 2001, imposes a duty that a company’s director not commit the offence of insolvent trading that require them to monitor the solvency of their company. Therefore, it is imperative for business owners and managers to recognise the symptoms of an unhealthy business and to seek assistance early to prevent the demise of their company.
At Condon Associates, our experience in the industry enables us to quickly identify the issues and remedies required to turnaround businesses and prevent them from going down the path of liquidation. Our team will analyse the condition of any business to determine the best strategies to stabilise or grow and sustain the business.
On the other hand, in instances where directors believe their company is insolvent or likely to be insolvent (unable to pay its creditors), there are strategies in place such as appointing an administrator that can still offer some chance of salvation. A voluntary administration will enable the administrator to conduct investigations and determine if the company has other options other simply liquidating, or if it is feasible to enter into a restructuring plan, also known as a deed of company arrangement, to deal with the debts of the company and to get your company back on track.
The recommendation here is, to consider the clichéd saying, ‘prevention is the best cure’. Instead of finding yourself in a position of trying to turn around a struggling business or waiting for your business to completely crumble, have your business independently assessed and seek friendly professional advice that will truly protect your worth.