For many business owners, the Christmas break provides a rare opportunity to pause, reflect, and reassess. With the demands of day-to-day operations on hold, it’s common for questions about the future of the business to arise:
- Are the pressures of running your business overwhelming, leaving you burnt out?
- Is the business placing a strain on personal relationships or compromising your mental and physical health?
- Have you lost the passion and drive that once brought you joy and satisfaction?
- Is your company struggling financially, unable to cover expenses, or at risk of trading while insolvent?
If any of these resonate with your client, it might be time for them to take a step back and consider whether keeping the business open is the right decision. It’s natural to feel a personal connection to the business – after all, time, energy, and resources are invested into it. But sometimes, the wisest move is to close or sell to protect their long-term interests.
Understanding The Available Options
When it comes to closing a business, a controlled exit can make all the difference. There are several pathways available:
- Winding Up a Solvent Company: This process involves paying off all debts and distributing remaining assets to shareholders before formally closing the company.
- External Administration: If the company is insolvent, options like voluntary administration or liquidation allow for a structured approach to managing debts.
- Simplified Liquidation: A streamlined process designed for small insolvent companies with liabilities under $1 million.
- Selling the Business: Assets, stock, and intellectual property can be sold to another entity, providing a clean exit.
- Merging with Another Company: By merging, your business’s assets and operations are transferred to a new entity.
Each of these pathways has its own intricacies and potential challenges. Missteps can lead to unnecessary costs, legal complications, or prolonged stress.
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We recently worked with a client who ran a family-owned retail business that thrived for over two decades. Rising costs, a shrinking customer base, and increasing debts left them burnt out and uncertain about the future. Concerned about insolvency and the impact on their personal assets, they reached out to the de Jonge Read team.
We implemented a controlled exit strategy using a simplified liquidation process. This solution enabled the client to close the business, address outstanding debts with creditors, and protect their personal financial position. They have since moved forward with peace of mind, free from the stress that had taken a toll on their health and relationships.
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How de Jonge Read Can Help Your Clients
As trusted advisors, you are often the first to see the warning signs when a business is under pressure. Whether it’s cash flow issues, insolvency risks, or the emotional toll on owners, early intervention is key.
At de Jonge Read, we partner with you to deliver the right solution for your clients for a controlled exit, whether it’s a sale, voluntary administration or liquidation, we ensure the best outcome for your clients. Here’s how we can support your clients:
- Expert Guidance: We develop tailored exit strategies that address their specific needs
- Smooth and Compliant Processes: We navigate the legal and financial complexities to ensure a seamless transition
- Risk Mitigation: By helping your clients make informed decisions to protect them moving forward
Sometimes, the toughest decisions are also the smartest ones for your clients’ best long-term interests.
If you have clients questioning the future of their business, act now. A confidential conversation with our team can provide the clarity they need to make the right decision—before stress and uncertainty take a greater toll.
Take action now – contact the de Jonge Read team today to discuss the best path forward and ensure your clients’ best interests are looked after.
Should you have clients or associates that you know are struggling with financial issues or need assistance in reviewing their business affairs in preparation for what’s around the corner, our team of Strategists would be pleased to discuss options that are available on how to best design and implement insolvency strategies. Contact us now on p. 1300 765 080 | ua.mo1736860533c.arj1736860533d@ofn1736860533i1736860533
Did you know?
Phoenixing is another name of business restructure. Read more about business restructures and when this can be an option for you.
