Secure your future with strategic Small Business Restructuring tailored to your business needs.
Secure your future with strategic Small Business Restructuring tailored to your business needs.
AVA ADVISORY
With extensive Small Business Restructuring (SBR) experience combined with in-depth business debt advisory expertise, our pragmatic approach and passion for helping directors and owners of SMBs positions us as one of the leading Small Business Restructuring specialists in Australia.
We provide end-to-end guidance and support for directors and owners considering a Small Business Restructure, in order to help distressed – yet viable – small businesses reset and recover from financial adversity.
• Insights and expertise
Our team has unrivalled expertise in small business restructuring, small business debt solutions, and turnarounds. We leverage these experiences to analyse your operations and finances, identify issues, and guide you in developing a tailored small business restructuring plan that addresses the root causes of your financial challenges. We draw insight from hundreds of successful SBRs to put your business on the path to recovery.
• Strategic planning
Throughout the SBR process, we take a strategic approach focused on preserving value and setting up your business for a sustainable future. Optimising cash flow, operations, and capital structure are key areas we consider as part of the small business restructuring plan and beyond. With practical, pragmatic guidance, we turn a challenging situation into an opportunity to reset your strategic direction.
• Transparent communication
Open and honest engagement with creditors and other stakeholders is crucial during restructuring. We prioritise clear, plain-English communication to maintain confidence in your business throughout the SBR process. Our emphasis is resolving issues through upfront negotiations, not conflict. We leverage our expertise to get stakeholders on board with the restructuring plan.
Small Business Restructuring (SBR) is a formal process designed for financially distressed yet viable small businesses in Australia. Launched by the Federal Government on 1 January 2021 and increasingly recognised as a lifeline due to the Australian Taxation Office’s (ATO) supportive stance, SBR allows you to steer your business back to stability without relinquishing control.
Small Business Restructuring provides struggling companies with breathing space to develop a restructuring plan to improve business viability, under the guidance of an independent Small Business Restructuring Practitioner (SBRP).
How does small business restructuring work?
• Directors appoint an SBRP who takes over the restructuring.
• Normal business operations continue under director control.
• The SBRP works with directors to develop a restructuring plan within 20 business days.
• Creditors vote on the plan within 15 business days – it must receive over 50% approval.
• If approved, the plan is implemented and the company is restructured.
• The process concludes once the plan is fully implemented and completed.
Our streamlined Small Business Restructuring process follows a clear, tried-and-tested, four-step approach to give you the greatest chance of financial recovery. Each step provides pragmatic guidance and support from our SBR specialists.
Pre-Appointment
We start by undertaking an initial assessment and viability review of your business to determine if undergoing an SBR is the best option for you (as a small business director and/or owner). This looks at the scope for a successful small business restructure based on an in-depth analysis of your circumstances and the business’s current financial position.
Restructuring
The practitioner thoroughly analyses your business and works with you to develop a restructuring plan within 20 business days. We provide expert advice and guidance on the plan based on your goals, creditor priorities, and the optimal outcome. The aim is a fit-for-purpose plan tailored to your situation.
Execution Plan
Once approved by creditors, it is crucial the plan is efficiently executed for the restructure to succeed. We oversee this process alongside the SBRP, assisting with implementing changes and managing creditor obligations. Robust project management prevents delivery issues.
Post-SBR Support
Once approved by creditors, it is crucial the plan is efficiently executed for the restructure to succeed. We oversee this process alongside the SBRP, assisting with implementing changes and managing creditor obligations. Robust project management prevents delivery issues.
Not all distressed businesses are eligible for the Small Business Restructuring process. Specific criteria must be met in order to qualify, including (but not limited to):
• Your business must be an incorporated company (also known as a “Proprietary Limited”(Pty Ltd) entity).
• Total liabilities must be less than $1 million.
• All tax lodgements are up to date.
• Super paid and up to date.
• The company must be cash flow insolvent now or about to become insolvent in the near future.
• There should be reasonable prospects for your business to trade viably in the future if effectively restructured.
Reforms to corporate insolvency laws commenced on 1 January 2021 to assist companies with liabilities less than $1 million. These reforms under Part 5.3B Corporations Act included a new debt restructuring process for incorporated businesses, a new simplified liquidation pathway, and a new class of registered liquidator (the Small Business Restructuring Practitioner (SBRP).
The role of AVA Advisory as your trusted advisor.
As Small Business Restructuring specialists, we provide invaluable guidance to directors and owners during the Small Business Restructuring process, such as:
• Initial viability assessment – We can undertake a preliminary review of your business to determine if SBR is appropriate and likely to succeed.
• Appointing the SBR practitioner – We understand your needs and the outcomes you require as a director. Our network of highly qualified restructuring professionals are ready to take on the SBR practitioner role and oversee your SBR in line with those needs and outcomes.
• Business analysis – Our SBR experts will thoroughly analyse your operations, finances,
assets and liabilities to inform the SBR plan.
• Plan development – We provide practical advice on developing a robust and realistic SBR plan tailored to your situation.
• Creditor negotiations – Our SBR specialists can negotiate effectively with creditors on your behalf to gain support throughout the process.
• Plan development – We provide practical advice on developing a robust and realistic SBR plan tailored to your situation.
• Implementation support – We work closely with you and SBRP to implement the approved restructuring plan efficiently and effectively.
• Ongoing advisory – We provide continuing support post-SBR to directors and owners to safeguard their interests as the business thrives.
• Contingency Planning – Where an SBR is not feasible, we can guide you through the various options (such as exit planning or a winding-up) while protecting your interests as a director.
Our priority is positioning directors and owners of SMBs across Australia for the best possible outcome in times of uncertainty, leveraging our extensive restructuring experience to provide clear and compassionate guidance every step of the way.
Here are some common challenges we’ve seen directors and owners of small businesses face during the Small Business Restructuring process and how AVA Advisory can help address them:
• Cashflow pressures – Trading losses may continue, putting pressure on working capital. We can assess funding needs and options to sustain operations.
• Forecasting uncertainty – Projecting future viability with accuracy can be difficult. Our experts undertake robust forecasting based on realistic assumptions.
• Disruptions – Customers or suppliers may lose confidence due to the restructuring. We help maintain stakeholder confidence through clear communication.
• Trade negotiations – Getting concessions from suppliers on credit or pricing can be challenging. Our SBR specialists are experienced negotiators with your interests at heart.
• Asset threats – Secured creditors may try to enforce their security. We can negotiate standstill agreements to help mitigate asset risks.
• Time pressures – Developing the restructuring plan within 20 business days is a tight timeframe. We have a proven methodology to deliver on time.
• Trading losses – The business may continue to lose money during SBR. We analyse the viability of the business and help directors and owners make the tough calls (such as discontinuing unprofitable operations).
With pragmatic guidance tailored to address these all-too-common challenges, AVA Advisory gives small businesses the greatest chance of successfully navigating the SBR process.
Let’s start mapping your path to financial freedom.
Don’t wait – the earlier we start, the more debt relief options will be available. Contact us today on 1300 181 220 for an obligation-free, cost-free consultation. Share details of your situation and concerns in confidence.
With expertise on your side helping analyse business debt relief options, ATO debt advice, and negotiate agreements, you can look forward again. Clarity, relief, and a brighter future for you and your business are only a few steps away – fill out the form below for your free consultation.
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Lv 9 / 10 Spring St Sydney NSW 2000 Australia
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