Financial Advisory
Forvismazars
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 historic tax planning issues that led to the issuance of an Advanced Payment Notice (APN). This situation rendered the company insolvent on both cash-flow and balance sheet bases. To address these challenges, 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 companys shares or assets were marketed for sale, but only assets-only offers were received. The sale process and administration were subsequently approved by the key creditors, leading to a pre-pack administration sale of the business. The impact of this tailored solution was significant. The business and certain 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 operational capacity but also maintained job security for its workforce.