Time and time again, it’s the most adaptable and entrepreneurial businesses who have the highest chance of surviving tough times. The businesses who endure are those who focus on building value as well as protecting it. Those who read the marketplace and find their niche in it. Those who move with the times and stay current.
If, like so many SMEs right now, you are in the throes of reimagining your future, you’ll be having to find your own way through this. Every SME is individual and what works for your nearest competitor won’t necessarily work for you.
At Moore Kingston Smith, our market intelligence tells us that SMEs are tackling this in different ways. Some are considering some kind of turnaround approach to salvage their bottom line. Some are re-evaluating their aims and objectives and trying to find a toe-hold in the new unfamiliar landscape. Some are looking at overhauling their structure to meet the requirements of the new normal.
Some are way ahead, having already changed their direction, knowing where they’re heading. Others simply don’t know where to start and need a steering hand.
At Moore Kingston Smith, we’ve helped many owners safeguard their business during rocky periods. For example, in the last financial crisis, some of our team were here to guide clients through it, while others were actually managing businesses themselves, and survived.
Whether your business has only 50 employees or its own dedicated finance department, we can give you the level of assistance that you need. You might just need reassurance that you are, in fact, doing all the right things. Or you might be concerned that your cash resources won’t see you through your various forecast scenarios. Or you might need specialist hands-on consultancy in several areas of your business.
Whatever level of support you need, we will help you not only survive but thrive. Our business plan pressure test will reassure you that your business is on the right track and that you’re all set. Alternatively, you might need to reset your business for growth, with us assessing your current situation and drawing up an action plan to get you through the immediate to mid-term future.
Contact us for a no-obligation confidential conversation about your business circumstances and how we can help you.
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We provide seamless turnaround restructuring solutions for your business.
Most businesses are founded by people with a passion for creating ways to deliver better products or services to their clients. As the business grows, so its value increases and the owners consider a future sale to reap the reward of their hard work. But what is the right price, and how do you achieve it?
At Moore Kingston Smith Licensed Insolvency Practitioners, we are with our clients through the tough times as well as the good times. So if you are facing challenges – be they performance dips, mounting debt or reduced cash flow – we can help.
Take a look around your workplace. Everyone happy to be here? It may seem that way, but the reality is that, at any one time, more than half of employees in the UK are considering changing jobs. And as soon as people have itchy feet, they are disengaging.
You know you need to focus on the big picture – to work ‘on’ rather than ‘in’ your organisation. But it’s not cost-efficient for you to invest in a back-office team for all that day-to-day detail. Our outsourcing services are the perfect solution – enabling you to lighten your load and drive your success forward.
When was the last time you took a step back and thought about running your business? We’re not talking about the day-to-day management, but your goals and aspirations? As the old saying goes, if you don’t know where you are going, you might end up somewhere else. And, even if you do know where you’re going, do you know where you are now – your starting point?
Tax may be complicated, but we don’t believe in turning what we do into a dark art.
Our 70-strong team of tax experts supports businesses ranging from start-ups and SMEs to some of the largest companies in the world. We guide them through the compliance landscape, ensuring they meet all their obligations.
We are one of the few leading accountancy firms with a dedicated forensic team. Our specialists offer decades of experience in complex cases involving multinational companies as well as privately-owned businesses and individuals. They provide expert witness, advisory and investigation services and have given evidence in the High Court, other courts and the Land Tribunal on numerous occasions.
With the pandemic accelerating the rate of change and business leaders needing to proactively manage across multiple scenarios, we work alongside our clients to help them evolve their businesses to meet their customers’ changing needs.
A consumer PR agency approached us, in considerable distress, for advice on the future of their business and whether they should apply for a CBILS loan. The managing partners feared their only viable option was to close down.
However, we managed to create a sustainable business structure to keep the company afloat throughout 2021, without needing the loan after all. Now, the managing partners are confident their agency is fit to face the future.
We started by having an in-depth conversation with the managing partners, where they catalogued their predicament. They were incurring significant monthly losses, had lost major clients, their H2 revenue forecast showed income dropping by over 50%, they had deferred paying VAT, implemented salary cuts and furloughed staff. Yet still their cash was due to run out in six months’ time.
Next, we went through the agency’s cash flow, balance sheet, profit and loss, budget and trading forecast, and identified missed opportunities and substantial flaws in their management information. We uncovered a major fundamental error in their cash flow modelling, which is what had made the managing partners believe that insolvency was looming.
Conversely, our cash flow modelling demonstrated that they did in fact have the reserves to execute a successful strategy. We also reviewed their overhead base, pinpointed appropriate cost reductions and our HR consultancy arm subsequently handled their staffing restructuring needs.
The agency said: “Thank you to the team at Moore Kingston Smith. We feel assured that the business is set up for the foreseeable, and the decisions we are making are based on sound reasoning.”
MKS supported a family owned food manufacturer with severe liquidity problems and losses. The team stabilized liquidity following a comprehensive situation analysis, identifying opportunities to generate cash quickly from inventory and restructured the staff base. The team negotiated with funders for a grace period and then identified strategic assets and buyers before ultimately selling the business to one of these strategic buyers realising shareholder value and refinancing the debt.
The MKS team advised a struggling marketing services business that had become loss making following the termination of major client contracts resulting in a return to profitability within 5 months. Following a detailed options review and modelling exercise the team guided the business through a process of reducing headcount to eliminate excess capacity, a premises renegotiation with their landlord and a comprehensive cost cutting exercise based upon a zero based budgeting approach.
MKS supported a medium sized manufacturing business with severe losses and cash flow issues. The team performed a comprehensive situation analysis, prepared an integrated financial model and identified opportunities to renegotiate supplier terms to provide financial headroom before ultimately arranging for a sale to a key supplier realising shareholder value and safeguarding the business.
MKS supported a wholesaling business which had seen their revenues cease as a result of lockdown obtain a £1.5m CBILS loan from their bank to provide liquidity during the Coronavirus crisis. The team performed a review of the options available to the business, including government support, reviewed and advised them on their business plans and forecasts and supported them through the loan application process.