Protecting your business assets
Getting your business structure right is the best way to protect against the consequences of financial difficulty.
Once financial difficulties arise, it can become very difficult to structure your business in the way you would have done at the beginning.
Regular reviews of your business and operations will put you in a better position to anticipate and address operational and commercial issues, and reduce – or eliminate – risks before they cause real concern.
We can help you devise the best structure to protect assets.
This can be particularly important where you have intellectual property to protect, or where your business may be prone to attack from competitors or creditors.
You might also want to protect against an unwanted person becoming involved in the business (e.g. upon the death or divorce of a shareholder).
Steps may be taken to reduce the risk of key employees damaging your business by, for example, removing confidential material or setting up in competition.
If your business is in financial difficulty, or under attack from an aggressive claimant, then protecting key business assets becomes more difficult – though not impossible.
We can ensure that steps taken are legitimate, and do not expose you to the risk of personal claims.
The pre-pack sale
Pre-packaged administrations of companies, partnerships, and LLPs can be used to rescue a business. These routinely involve the sale of the business by the administrators to a new company owned by some or all of the executives of the insolvent business.
If this is the right way forward for you, then we can assist in constructing the pre-pack administration, and advise you on the intricacies involved ranging from the effect on employees to the application of the “prohibited name” sections of the Insolvency Act 1986.
For more information on protecting your business assets and to start a conversation on how we can help you please contact Andrew Frake, Associate, Dispute Resolution.