March 8th, 2010
Some businesses have to cope with economic issues at least once in their lives. And, sometimes business owners opt for pre-pack administration as a suitable solution.
What is pre-pack administration?
This is a legalised method wherein an entire business is sold off to a third party. It is not always a necessary that the complete business should be sold in one part; it can be separated into many parts and sold this way too. This method of pre-pack administration is the perfect legal way of selling the good parts of the business to an entirely new company. This new company is sometimes known as a phoenix company because it appears from the ashes of the old business.
Pre-pack administration reasons?
There are several problems that can affect a business in a negative way; these might be financial or even legal.
• Issues related to the VAT bodies, tax freeholders, and credit sources such as the company’s home bank or even suppliers.
• If a company is not able to meet the duties of payments of bills.
• It may be that present contractual requirements are forcing the business to make a loss.
These are some of the basic reasons as to why a company opts for pre-pack administration. When a business is not profitable, the creditors of that company might not be sure if they will be able to recover much of the debt owed to debtors. In such occasions, this method offers a very good chance to continue existing trade with customers and suppliers.
In many failed business cases, the method of pre-pack administration is regarded as the best solution.
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March 5th, 2010
Because of the economic situation across the world, plenty of businesses are really struggling to cope. This has led to a lot of businesses opting for pre-pack administration. This is a legal process wherein a business is sold completely or in parts to a third party, which can be the same directors.
Pre-pack administration is perfectly legal and a great way of transferring the best parts of the company. The new company is often referred to as a phoenix company, because it rises from the ashes of the earlier unsuccessful business.
The problems which the previous company suffered may have been caused by tax, freeholder and VAT bodies, dealers and credit. PAYE can also be a matter of concern as businesses find that they cannot meet the obligations of their bills. A problem may also be caused by the company increasing in size and not being able to meet the costs of this growth.
It can be a struggle running a business and this struggle is made more difficult when the country is going through an economic downturn as it has been. So, in order to save businesses from disaster, pre pack administration proves to be a logical answer.
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March 3rd, 2010
Today’s dynamic business environment often means that companies go out of business. This is often because the competition between companies is fiercer than ever before, and many companies simply can’t keep up with their rivals. This leaves them with no other option than to close down their business. There are a number of ways to shut down a company, but finding an appropriate exit strategy can be difficult.
One of the best exit strategies is to liquidating a business. Through proper liquidation, owners and directors can partially or completely liquidate their business assets. This can provide fast cash and help in sharing out equity.
However, before liquidating a business, company owners should first plan their exit strategy carefully. Companies that want to liquidate their assets should consider the following tips to ensure that it is successful.
• The first and most important thing is to consult the company’s accountant and lawyer to make sure that plan is a good idea.
• It is also important to appoint an experienced liquidation company so that the best price for assets is obtained.
• You need to determine a suitable time to sell off assets.
Putting these things into place with the help of expert liquidators can help significantly when it comes to liquidating a business. These will not only make the liquidation process successful but also profitable.
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March 1st, 2010
Over the last few years, a large number of companies have struggled to stay afloat. Many of these businesses have ultimately failed and have had to close down completely. With finance becoming tougher to gain, many companies are facing the harsh reality of bankruptcy. Fortunately, these companies don’t always have to fear the worst thanks to voluntary liquidation.
Why companies choose voluntary liquidation
Voluntary liquidation allows companies to shut down for good and liquidate assets, so that proceeds can be used for making important re-payments. However, this decision can only be taken by company directors or shareholders. Voluntary liquidation is usually undertaken if the company is insolvent and cannot pay off its debts anymore.
Another reason for voluntary liquidation is if directors and shareholders don’t feel that the business is viable. This often happens when products become outdated and the company can no longer compete in the marketplace.
Creditors voluntary liquidation
There are different kinds of voluntary liquidation, and of these creditors voluntary liquidation is the most common. This process is commonly undertaken when the shareholders of a company feel that the company doesn’t have adequate assets to repay creditors. During this process, company assets are assessed and liquidated. Proceedings are then distributed to creditors to pay off debts.
Regardless of why a company opts for voluntary liquidation, it is important to get a suitable liquidation company to take care of the process. This will ensure that everything is handled properly and that the best outcome is obtained.
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February 27th, 2010
Every year, hundreds of companies all over the world face financial difficulties due to lack of trade. At such times, these companies turn to various sources in search of financial help to get them through this difficult phase. Bank loans are generally the first option that comes to mind, but you cannot always be sure of getting the loans you need. Fortunately though, there are other ways to deal with bankrupt companies, namely, through pre-pack administration.
Pre-pack administration is very different from company liquidation and is a preferred process for businesses that have no future. Through this process, bankrupt companies can be closed down whilst at the same time; new limited companies can be set up by purchasing the assets of the older company. Pre-pack administration is very beneficial in a number of ways:
• One of the best things about pre-pack administration is that the new company does not have to repay any of the old company’s outstanding debts
• At the same time, the new company already has the older company’s assets. This allows the new company to start its trade and business with the same customers, suppliers and employees as soon as possible
• In addition to this, pre-pack administration allows the new company to shift its operation base elsewhere as it is no longer obligated to continue with lease agreements that the old company entered into.
All these benefits ensure that pre-pack administration can help set up a successful company from the ashes of one facing financial problems. However, to gain all these benefits, it is important to hire the services of a reputable and experienced pre-pack administration company.
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February 25th, 2010
Business failure can be caused by a number of factors nowadays. There is no doubt that these are stressful times for company’s owners and creditors, resulting in it being very rare for these companies to find a way out of their financial troubles during this time. However, many businesses facing financial problems at present can find a way out of them, thanks to the liquidation services provided to them.
Use business liquidation to close down companies
One of the best ways for these companies to deal with their financial troubles is through business liquidation. This makes it much simpler for company owners to successfully close down their business without facing legal problems. Business liquidation offers a number of benefits, which it is a viable and commonly used process for many financially-burdened companies.
Sell assets to gain revenue
During business liquidation, companies that are closing down can gain revenue from their existing assets. Assets can include tools, machines, locations, contact lists, customers or even the type of business. Regardless of the asset, companies can sell them in order to gain finances to be used for other purposes such as paying debts, bills and even employees. Based on the type of business and related assets, these companies can be sure of finding suitable buyers.
The best thing about business liquidation is that it can be availed of more easily than bank loans or other financial aids. However, companies wanting to benefit from business liquidation will need to hire a professional liquidation company to handle the process for them.
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February 24th, 2010
Business liquidation is no longer a new phenomenon. Current factors such as the global economic crisis, along with the need for downsizing, all contribute to the liquidation of businesses or firms nowadays. The service of a liquidation company is usually sought during company liquidation. If your business is in this situation, you need to know how to get the most from your liquidation company.
Office furniture is a major expense. Cubicles, desks and chairs cost a great deal of money and also tend to occupy a lot of space. In order to evaluate these furniture assets, you need to select and hire an efficient business liquidator. Some liquidators may give you the age-old response that your furniture accessories have depreciated in value, but an efficient and reputable liquidator will check the following facts:
• The quality of the furniture according to today’s market
• The condition of the furniture, i.e. age, damage etc
• The colours and the finishing
The liquidators will check the size of the furniture as well, as this along with design are important factors in determining the value of the furniture.
Therefore, companies should always go for reputable, thorough and efficient liquidator when selling furniture assets.
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February 23rd, 2010
The decision to shut down a business is one of the most difficult decisions any company owner has to make. However, this decision becomes a necessity when a company or firm is struggling and is unable to pay off any debts. The directors may feel that this is the best course of action when they have no alternative. This process is commonly known as voluntary liquidation.
Put simply, during this process, the creditors of the organisation agree to liquidate any assets of the company and take a share from it in order to minimise financial losses. In this process, an insolvency practitioner is appointed as the official liquidator. The liquidator deals with selling the company’s assets.
Liquidation begins with the valuation of assets, which is conducted by the liquidator. The liquidator then sells off the different assets for the highest price.
The process of liquidation was described as a blessing by several firms during the recession, and it also helped some people to set up a completely new business.
Liquidation is a good way of helping a company to start a business after paying off their old debts.
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February 21st, 2010
Liquidation is often seen as a last resort for when a company is facing business failure.
Liquidation firms can offer several services to customers. Businesses can opt for help from these firms when they are facing financial difficulty. However, some businesses don’t realise that these services can also be useful for day-to-day inventory issues as well.
Liquidation can either be voluntary or compulsory. Voluntary liquidation takes place when the firm agrees that they are facing financial ruin. On the other hand, compulsory liquidation takes place when the court orders a firm to liquidate their business. The assets of a company are then sold off.
Assets such as furniture and other stock are often left lying around when a business folds, and these can take up storage space- and this could add to costs in itself. Liquidation can help companies to get rid of such unwanted accessories, and even help them to receive money for it.
Company liquidation is indeed the ideal choice for any organisation that is dealing with a financial crisis and can’t see any other way out of it.
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February 19th, 2010
Over the last few years, many businesses have been struggling financially, largely due to the recession. Financial problems often lead to bankruptcy for companies, however the good news is that companies now have an effective way of dealing with financial problems and that is through business liquidation.
Why companies use business liquidation
Business liquidation is not an entirely complex process to understand. The process involves stopping trade between the company and its business partners. It also includes selling the company’s assets so that it can be turned into money, and with this money businesses can pay off any outstanding debts.
Reasons for using business liquidation
Generally, business liquidation is used to shut down a company that is insolvent and can no longer trade. However, this process can also be used for shutting down a solvent company. There are a number of reasons for closing down a solvent business, for instance, the owner simply might not want to run the company.
Business owners and directors firstly have to conduct a proper review of the company to ensure that business liquidation is the best way for closing the company down, and there are many experts that can help with this process.
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