The Credit Crunch – Why this could lead to more solvent liquidations

As a result of the Credit Crunch how many businesses now find themselves in one of the following situations?

• Facing reducing turnover/profitability and wanting to get out now while there is still value in the business;
• Fed-up with red-tape and finding it increasingly frustrating trying to run a small/medium-sized business
• Approaching retirement but can’t sell your business;
• Needing to restructure group situations e.g. because of retirement of a key director/shareholder or for tax reasons;
• Wanting to reduce the tax burden on distributions to shareholders;
• Needing to unlock value in a company because of divorce.

A members’ voluntary (i.e. solvent) liquidation may well be the best way forward.  The liquidator divides the company’s assets amongst shareholders by way of a capital distribution, rather than a dividend on shares, which is usually the most tax-efficient method, except for very small companies. 

Marshman Price directors, Neil Marshman and Alan Price, have combined experience of over 40 years of dealing with solvent liquidations and are happy to give your clients an hour’s free expert advice to discuss how they can help them achieve the best results in these circumstances.  We will work with you to develop and implement plans to minimise costs and maximise the returns to shareholders.  As licensed insolvency practitioners we are also able to advise if there are insolvency doubts or issues.

Call us on 01933 270 918 if you would like to arrange a free consultation.

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