What do I need to do when closing a company?

There are a number of reasons why you might want to close your company down and here are just a few:

  The company has lost contracts that it can’t replace and therefore the business is no longer viable

  A bad debt causes the company to cease trading as the cash flow hole it creates cannot be repaired

  Trading in the industry sector is challenging with no immediate signs of improvement

  Margins are squeezed and the company is loss making and its not clear how or when it will return to profitability

Where a company meets the tests of insolvency and there is no real prospect of a business to save then a Creditors Voluntary Liquidation is the required process to wind up the company’s affairs.

Addressing the Problem

What do I need to think about before starting the process?

  • Make sure you have up to date and meaningful Management Information as this allows a wider view of the available options
  • Review cash flow forecasts to establish the direction the company is taking
  • Undertake a review of your accounts receivable to establish the true collectability of your debtors ledger
  • Undertake a review of your accounts payable to establish what you owe to your creditors and when payment is due
  • Assess the true current market value of your assets

Let’s Talk

It’s important to speak to people who can help as early as possible. We have experienced teams who can help you and work with you to achieve the best outcomes for you and your business. For a no-obligatory chat, complete the form opposite, include a best time for us to call you and a Partner will be in touch.