Auckland Small Business Help

(VA) Voluntary Administration

“As prescribed under the Companies Act”

The primary rationale’ is that under a (VA) an administrator is appointed by the Directors or Creditor to give life to the business by allowing the Administrator to review the financial position of the company and determine if it can trade out of it’s present position.

• The Administrator takes full control of the business under the Act.
• The Administrator takes control of secured assets and negotiates with the secured creditors to move the Company forward.
• The Administrator ascertains the unsecured creditors and has meetings to determine if there is opportunities to move forward.
• The Administrator provides reports on the business to all parties and the Companies Office on it’s investigations.
• This process does not guarantee survival but it has the ability to give the Company a chance of survival.

Voluntary Administration can be an alternative to Receivership or Liquidation of a business in financial difficulties.

More about Voluntary Administration on the NZ Companies site

Auckland Business Turnaround Management

What is Turnaround Management ?

Turnaround Management Involves the formulation and implementation of a strategic plan and a set of actions for business renewal and restructuring.

It involves the identification of the major issues causing the problems and a structured plan for overcoming or mitigating the issues.

Then it becomes a role of the management of the implementation of the plan until such time as the issues no longer exist or the business is so profitable that they become insignificant.

Causes of Stress

• Acts of God
• Poor Vision and understanding of the Market
• Poor Strategies
• Poor business Model and Execution
• Lack of expertise, experience or education, weak management
• Market circumstances, weak economy
• Business economical reasons, earning crisis
• Management level arguments
• Fraud, insufficient financial controls
• Overly optimistic sales projections
• Financing problems, liquidity crisis, excessive debt burden, under capitalisation
• Operating cost levels too high
• Very strong, successful competitor
• Insufficient Resources, underinvestment

The solutions to these issues will depend upon the individual business and business owners.

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Auckland Small Business Help