A typical sales or fund raising project takes a number of months to complete. However, some businesses do not have the luxury of such an extended period of time as they face short term pressure on their cash flows. Such pressure can be caused by:-

• A significant bad debt
• A reduction or removal of funding facilities
• Loss of a key customer
• Pressure on margins due to price rises from suppliers and reduction in the sales price to customers
• Adverse trading conditions / seasonality of the business
• Substantial arrears with trade creditors and Crown related debts
• A change in the circumstances of the owners of the business

In such circumstances, it is often better to act quickly in order to preserve the value of the company rather than wait and risk the possibility of an insolvency procedure.

We have developed an approach whereby we agree with the company from the outset the timetable that is achievable. The quickest a transaction can be completed is 14 days however the longer the timescale the better.

Typically our approach will include considering both a refinancing of the entity in order to stabilise the cash flow and also a sale to a trade or professional purchaser.

WMT have extensive research facilities and will seek to identify relevant trade buyers both UK based and international.

By outsourcing the entire accelerated process to WMT, the directors of the company are able to concentrate on the day to day management of the business which is clearly critical during the time that the company is facing the potential distress.

Click on the following link to view an accelerated mergers and acquisitions case study

For further information about our Corporate Finance service please contact Andrew Williamson on 01727 838 255.