In the current economic climate, there are many businesses that suffer as a result of varied and unexpected factors; unsuitable financial structures, sudden regulatory changes or poor product/service performance in the marketplace. At this point, many business owners may realise that they are in need of assistance, but do not always know where to begin.

Very often the aspects that make the process intimidating are closely linked with the areas that need the most work. These include legal and regulatory concerns, debtors and creditors, asset assessments, diminishing or non-existent capital, waning profits, inappropriate cost structures and poor operational systems.

There is no need to grapple with these issues alone. Professional assistance means:

1. Benefiting from the unbiased review of the Company’s strategic business plans and understanding the organisation’s future funding requirements in light of current market and operational conditions as well as historical business performance.
2. Developing alternative business plans and highlighting strategic options available to owners and management while maintaining a sensitivity towards your existing staff and the skills, assets and resources required to reclaim and re-build the business.
3. Assisting you with the implementation of revised business plans including the establishment of growth drivers, negotiating with creditors, facilitating the possible sale of assets or discontinuance of a division and/or product line.
4. Providing interim management support in the form of senior management resources.

It is important to recognise the need for restructuring and intervention at an early stage when the business is more economically viable and there is a higher probability of successfully turning the organisation around.

In terms of the Companies Act No. 71 of 2008, the boards of directors of financially distressed companies are required to deliberate the Company’s ability to trade as a going concern and consider whether or not it is necessary to implement a business rescue process. Palmer Business Concepts can perform a pre business rescue assessment to assist the board in evaluating its strategic options and developing a suitable plan of action.