Professional Services
Mazars
Full Credential Description
In the case study of a pallet manufacturing company with an annual turnover of £2 million and 10 employees, the client faced significant financial distress due to an Advanced Payment Notice (APN) stemming from historic tax planning. This situation rendered the company insolvent on both cash-flow and balance sheet bases.
To address these challenges, a thorough review of the company's financial position and forecasts was conducted. Meetings with key stakeholders were held to explore solvent restructuring options. However, as the pressure on the business intensified, it became clear that these options were no longer viable. Consequently, the company marketed its shares or assets for sale, ultimately receiving only assets-only offers. The sale process was approved by key creditors, leading to a pre-pack administration sale of the business and certain assets.
The impact of this tailored solution was significant: the business and its assets were successfully sold, ensuring the preservation of employment for all staff members, who were transferred to the purchasing entity. This outcome not only salvaged the company’s operational capacity but also secured the livelihoods of its employees.