We helped a proprietor of two businesses facing severe financial pressure from a major creditor negotiate a better deal than was on the table. The business could not repay the major creditor within the timescale demanded.
The creditor suggested a take over of the business at a value equivalent to the debt due. It was then proposed that other additional debts due from the proprietors associated business be repaid over a few years. This could have had a catastrophic effect on the associated business. The proprietor felt trapped and even though he did not like the deal he couldn’t say any alternative.
The advising accountant knew it was not a good deal and suggested the client talk to us to seek an additional opinion and discuss alternative options with a view to negotiating an exit. We suggested a number of alternative methods to make a counter offer. We mentored the client and assisted him in formulating a precise negotiation strategy. The client stuck to the formula and succeeded in agreeing to a deal well over £200,000 better than initially offered. The client was very grateful for the advice and pleased he salvaged one business and eliminated a very large liability.
