Finance Monthly - April 2023

Bus i ne s s & Economy Finance Monthly. 54 Given the toxic operating climate that many UK businesses are currently facing - with some reports stating that 600,000 UK businesses are experiencing severe financial distress -, what advice would you give to company directors who are considering taking their business into liquidation? It is absolutely crucial to seek professional advice urgently. We know that the earlier you speak to expert insolvency professionals who can assist, the more options there are likely to be for saving the business or finding positive outcomes. This can often be the difference between restructuring the business or going into administration or liquidation. Insolvency professionals will be able to help the business navigate their way through the difficulties and if liquidation is the best option, they can manage the process for the business to achieve the best possible outcome. What factors do you feel are currently driving the current wave of insolvencies, both voluntary and compulsory, and what headwinds should company directors be aware of in 2023? There are currently a host of factors affecting businesses in the UK, including rapidly increasing costs of materials, unprecedented energy price inflation, interest rates returning to the long run average and of course changing consumer behaviour. We are also still seeing the impact of the shift to employees working from home and the effect this has on transport use and the city centre retail and restaurant/leisure sector. With so many companies under pressure, how does your firm typically assist in the restructuring and recovery of a company? Landwood Group provides business asset and property valuation plus appraisal advice to insolvency professionals and the businesses they advise. Valuations can also be used by businesses to help refinance and obtain a much-needed cash flow boost. The Landwood Group team also assists businesses with the sale of surplus assets and property to generate capital for reinvestment in the business or to help right-size its operations. In the current climate, is securing more credit to aid recovery a viable option and what ‘tests’ would you typically undertake to determine if more funding is the right way forward? Businesses often secure additional funding to assist with navigating a difficult period, buying them time to restructure and get onto an even keel. And while this is outside “The market for distressed assets usually remains resilient with experienced buyers ready and willing to act at short notice. Buyers of machinery and business assets tend to be savvy and well aware of the opportunities to be had in this environment.”

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