Professional Services Sector Closure and Rescue Options

Welcome to our Professional Services Sector Hub, where we address the key challenges faced by the sector and tailored solutions to help companies overcome them.

Professional service companies assist and consult with other companies, offering specialised skills in areas such as recruitment and IT. Changes to tax legislation reduced the advantages of operating professional service businesses, such as consultancies, in a limited company, and potential clients tightening budgets due to turbulent economic conditions can be a detriment to companies providing professional services.

Each industry has its own challenges and sensitivities to consider when seeking insolvency advice. We understand every sector has its own pressures to factor into any proposed insolvency proceedings. By embracing a sector-specific approach, we can ensure that our guidance is tailored to your company and importantly, the marketplace which you work in.

Featured industries

Our team of licensed insolvency practitioners has extensive experience in assisting companies with financial difficulty, across all sectors. While we have experience working with a wide range of industries, we have also created dedicated pages, to help with specific industry challenges within the professional services industry.

• Recruitment Firms
• IT Companies

How we can help rescue your professional services company

Below are two formal insolvency procedures, which would allow professional service companies to continue trading while protected from creditor action.

• Repaying company debts through a Company Voluntary Arrangement (CVA)
  A CVA is a formal repayment plan that allows companies to repay unsecured debts in affordable instalments while protected from creditor pressure. The procedure typically lasts five years. after which any remaining unsecured debt is written off. A CVA would give your company flexibility with repayment schedules, enabling you to continue trading, maintaining goodwill and reputation, preserving customer loyalty and market presence in a front facing sector.
  More on a Company Voluntary Arrangement
• Restructuring the company through Administration
  If your company requires more substantial restructuring, administration allows a licensed insolvency practitioner to act as administrator, aiming to return the company to a profitable state. It is a temporary state wherein the company is protected from creditor pressure. The administrator can restructure the company’s operations, management, and finances to help improve efficiency and profitability. Restructuring of the company can also lead to potential sale options, which might include selling parts of the business or finding new investors to boost the company’s financial stability.
  More on administration

How we can help close and liquidate your professional services company

If you have an insolvent professional services company, liquidating your company would draw a line under its operations and write off its unsecured debts.

• Close your professional service company via a Creditors Voluntary Liquidation (CVL)
  A CVL is a formal insolvency procedure designed for companies that are insolvent and have unmanageable debt. The process will formally close and wind-up your company. A CVL will terminate payment arrangements, future payments, and when completed, will write off unsecured debts and arrears. If eligible, employees and directors will be able to apply for statutory entitlements such as redundancy and holiday pay. If the company cannot afford to pay staff entitlements, claims can be made through the Redundancy Payment Services.
  More on a Creditors Voluntary Liquidation
• Close your professional service company down and start again via a pre-pack liquidation
  A pre-pack liquidation is a common term for a type of CVL, where a company’s assets are sold to a new company before the old company is formally liquidated. This is commonly known as a pre-pack liquidation. This approach enables you to continue trading your business, retaining key assets, keeping your customer base and business relationships, without any historical unsecured debts. You can also transfer your employees to the new company under TUPE regulations, ensuring their continued employment. In some cases, you may be able to reuse your company’s trading name, but this can be complex. We can advise you on these processes and how it works.
  More on pre-pack liquidation

Commercial finance for professional services

If your company’s cash flow is healthy but significant upcoming payments are putting a strain on your finances, commercial finance could be a viable solution. There are various finance options available to help manage one-time expenses, or to bridge gaps in incoming payments Speak to use for a more detailed breakdown of which commercial finance options might be the best fit for your company.

How to get in touch with us: The next steps

If your company has debts and is facing insolvency, it’s important to understand the different closure and recovery options available. We have experience of helping different industries within the sector and can offer a comprehensive explanation of the options available to you, and our experienced consultants will look at tailoring our processes to your company’s situation.

Speak to our initial advisers, who can advise you on your company’s solvent position and outline the options best suited to its circumstances.

1. Contact our initial advisers:
   Speak via phone or online chat. If we can help, we will arrange a free consultation with one of our consultants to discuss your situation in more depth.
2. Arrange a consultation:
   During a meeting with one of our consultants, we will advise if an insolvency procedure is the most appropriate route forward or what alternative options are available.
3. Next Steps:
   After your consultation, if there is an appropriate route forward, we will issue the relevant documentation for you to formally engage us.

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