Turnaround & Restructuring in Perth & WA
Turnaround and Restructuring in Western Australia
No one wants to be at the helm of a failing business. But sometimes circumstances mean that profitability drops and you’re left lying awake at night trying to figure out how you can turn things around. Often, this can feel overwhelming and impossible.
In this situation, turnaround and restructuring could be just the solution you need. Importantly, the quicker you take action to save your Perth business, the better the outcome. Turnaround and restructuring can help you take back control.
When you’re close to your business, it can be hard to see the wood for the trees. As independent turnaround and restructuring experts in Western Australia, we have the advantage of being able to look at your situation objectively, make tough, what would be, emotional decisions, and create a clear and effective plan of action going forward.
The turnaround and restructuring process in Perth
Seeking Expert Advice
Once you’ve engaged us as your turnaround expert, we’ll assess your situation and business viability. We’ll then make initial changes to establishing positive cash flow, deal with creditors or urgent issues and identify areas to improve profitability
Implementing A Plan
We’ll help you to develop and implement a turnaround plan. This might include restructuring outstanding debts, improving cash flow management and reducing operating costs.
Return To Positive Trading
Once things have improved, we’ll work together to correct issues to ensure ongoing stability and efficiency. Lastly, we’ll focus on making profitability and return on equity inherent in your business.
Mark and Lisa owned and ran a local Perth bar and restaurant that was struggling to break even and pay its debts.
The bar/restaurant was their first business venture as a couple, and while they had catering experience, they didn’t have strong business or financial backgrounds. Part of the reason for their struggles was that they were losing customers to other local competition,
They had been working on upping their marketing efforts and had already streamlined their staff to the bare minimum.
The couple were at tipping point, with the financial strain affecting their relationship and life outside of the business – creating a hostile workplace for staff. They eventually decided they needed external help and engaged us as turnaround and restructuring specialists.
We assessed the Western Australia based business and reassured Mark and Lisa that their business could be saved. Our plan included competitor analysis, pricing adjustments, replacing the chef, and working on online marketing.
Return To Profitability
The restructuring and turnaround efforts increased business and streamlined spend.
Better Business Direction
The process helped Mark and Lisa gain business clarity and plan for growth.
The couple began to get along again, staff were happier, and service improved.
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At Revive Financial, we care about the stress and impact being in debt has on your wellbeing. We want to help you take back control with no judgement, just a helping hand.
Revive Financial is proudly Australian owned and lead by a team of Chartered Accountants. Our qualified team have been helping Australians become debt free since 2005.
Our dedicated team have been trusted by over 10,000 Australians to help take back control of their financial futures. It's what we do best so you can rest assured.
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Frequently Asked Questions
Who has control of the company during a restructuring?
The directors of the company have control of the company’s business, property and affairs.
The restructuring practitioner acts as the company’s agent.
What's the difference between a restructure and insolvency?
Insolvency means the business can't pay its debts when they fall due. Potential causes of business insolvency include poor cash management, excessive expenditure to support growth, lower than expected sales performance, and increased competition. Left unaddressed, insolvency can lead to insolvency proceedings and legal action like liquidation. Company directors have a duty to prevent insolvent trading, meaning businesses need to address the prospect of insolvency in a timely manner.
In contrast, a business restructure isn't specifically concerned with the inability to pay debts when they become due. Restructuring involves the reorganising of the business to enhance profitability, so it could help businesses who are at risk of becoming insolvent. The key difference is a restructure is a plan to improve an organisation's profitability, while insolvency describes a particular state the business is in: unable to pay its debts as they fall due.
What does a business turnaround mean?
When a business undergoes a turnaround, it shifts from negative to positive – usually facing significant financial (or even survival) challenges – towards a positive financial future and sometimes major profitability. Like restructuring, turnarounds are a purpose driven process which involve a plan, review of strategy and execution of a new vision. For example, it could involve getting new investment.
Turnarounds are usually triggered due to serious challenges in processes, financial management, market conditions, and other factors that lead to the decline of the business. They're typically short-term processes designed to enhance business performance for the longer term.
What are the eligibility criteria for restructuring?
To be eligible for a restructuring, on the day on which the restructuring practitioner is appointed:
- Total liabilities of the company must not exceed $1 million
- No person who is a director of the company, or who has been a director of the company within the 12 months before the appointment of the restructuring practitioner, has been a director of another company that has been under restructuring or subject to the simplified liquidation process within the period of the preceding seven years, unless they are exempt under the regulations
- The company must not have undergone restructuring or been the subject of a simplified liquidation process within the preceding seven years
The exemptions prescribed by the regulations are:
- If, the other company is a related body corporate of the company; and
- The other company is, or has been, under restructuring - the restructuring practitioner for that company was appointed no more than 20 business days before the day on which the restructuring of the company for which the eligibility criteria are to be met began
- The other company is, or has been the subject of a simplified liquidation process – the other company began to follow the simplified liquidation process no more than 20 business days before the day on which the restructuring of the company for which the eligibility criteria are to be met began.
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