In this Case Study, My Business Path stepped in to assist the business across a four-week period. Through Business Restructure, a plan was devised that saw creditors paid and the company continue trading. Read how we made this happen.
The Financial Situation
In this Case Study, this small Sydney gyprocking business came to My Business Path
- under pressure from a number of creditors, including the Australian Taxation Office; owing around $160,000 to creditors overall with the ATO specifically owed $110,000
- Company assets included a truck and tools of the trade
- Should the company fold, both the business and the creditors stood to lose money, and while the sale of assets would have generated some money for the creditors, it would have been below the true value.
My Business Path's role in relation to the business was to
- coordinate a registered valuer to assess the business, including all assets and goodwill
- set the client up with a new ACN
- register the new company for GST
- put a new Business Structure into place
- set up systems to avoid returning to the previous financial situation
My Business Path worked closely with the business to see
- assets and goodwill boosted by the valuation for their true market value
- the new ACN purchase the assets and goodwill from the old company for the true value according to the registered valuer's valuation
- creditors, including the ATO, recover the true value of the assets with debts serviced
- business continue trading
- the client continue providing for his family
The people are real. The businesses are real. My Business Path designed a tailored solution that worked.
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