Financial Advisory
Forvismazars
Full Credential Description
The case study focuses on a pallet manufacturing company with an annual turnover of £2 million and 10 employees, which 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. In response to the crisis, a thorough review of the companys 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 that all employees were transferred to the purchasing entity, thereby preserving their employment. This outcome not only salvaged the companys operations but also maintained job security for its workforce.