How to Quit a Business

If you’re not sure how you’re traveling take the business health test. It’s no obligation and free. A link to the health check is below

Exit optimisation can some times be a little tricky.  Whether it’s planning for the exit of key individuals over time through a succession plan or assisting you through difficult negotiations and disputes or a formal liquidation or restructure for your company.  There are a number of complex issues which must be addressed.

The same applies for you as an individual, this includes both informal and formal arrangements between you and your creditors.

By way of example there are a number of ways to sell your business or assets, expressions of interest, sealed tender or an open market play.

Negotiations and mediation also have a role to play when dealing with disputes.  In some cases formal assistance may be obtain from the court system.

You may have to contemplate some form of insolvency regime to assist with the process.  Here are some simple options to help you with your Exit Optimisation.

Voluntary Administration

This is an efficient process employed when a company is insolvent or likely to become insolvent. Voluntary Administration allows for effective restructuring of a company to achieve a desirable outcome for the company, its creditors and employees.

Small Business Restructure

Since early 2021, small businesses have been able to access a new insolvency framework known as the Small Business Restructuring framework (SBR). One benefit of the SBR is that it leaves control of an underperforming company in the hands of its directors.

In exchange for retaining control, the framework requires that the company appoint a small business restructuring practitioner, who will act as a facilitator between the company and its creditors, to assist in the preparation of a restructuring proposal/plan presented to and voted on by creditors.

Creditors’ Voluntary Liquidation

This is the most effective means of ending the affairs of a company.  The directors of a company start the liquidation process. It is a quick an effective way of winding up a company’s affairs. 

Insolvency Agreements

A Personal Insolvency Agreement (PIA) is where a person enters into an agreement with their creditors without being made bankrupt. Once the parties come to an agreement, the proposal is binding. A personal insolvency agreement enables a person and their creditors to come to a mutually agreed compromise in a relatively simple way without a Court.

Debt Agreement

A Part IX debt agreement is a legally binding agreement between a person and their creditors. A Part IX agreement involves a person proposing a deal with their creditors.

Debt Management

If you are juggling repayments and debt, then help get your finances back under control. I have a number of options including dealing with your creditors and how to manage and control your debts.

Bankruptcy

Bankruptcy is where declared unable to pay your debts.  When you become bankrupt you will be released from most of the debts.  It sounds appealing but comes with consequences.  Once declared, you will be a bankrupt for 3 years and a trustee will manage your financial affairs.