Controlled Insolvency Exits
Controlled business exit strategies help business owners transition out of their business smoothly. Each strategy requires advance planning to maximize value, protect stakeholders, and align with the owner's personal and financial goals.
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Have you received a Director's Penalty Notice from the ATO?
Director Penalty Notices ("DPN") means the ATO has made the Director personally liable for the debts of the Company. If these notices are issued to a director, then we will need to move quickly to avoid further personal liability for tax debts. More info.
Controlled Insolvency Exits
When selling or transferring ownership is not viable due to significant cash flow challenges, controlled insolvency exits provide an organised way to close the business. These corporate exit strategies minimise debts and protect the business owner’s interests, even if the financial return is less than other strategies.
Voluntary Administrations
Voluntary Administration is a process that offers insolvent companies the options to:
- Negotiate a formal agreement with creditors via a Deed of Company Arrangement (DOCA), or
- Proceed quickly and affordably into liquidation.
Upon appointment, the Voluntary Administrator takes full control of the company and oversees its ongoing operations, including its business, assets, and financial affairs. This structured exit strategy for directors protects both creditors and directors.
Creditor's Voluntary Liquidations
Creditors Voluntary Liquidation occurs when the directors and shareholders of a company decide that the company is unable to meet its debts and declare it insolvent or likely to become insolvent. This approach ensures an organised business exit strategy while halting creditors' pursuit of outstanding debts.
Personal Insolvency
Some business exit strategies require personal insolvency to address personal guarantees or Director’s Penalty Notice debts. Personal Insolvency options include bankruptcy, Part IX Debt Agreements, and Part X Personal Insolvency Agreements (PIA). These strategies ensure the director achieves a structured and manageable exit.
At Thryvv.io, we act for you.
Thryvv.io acts for you, the business owners and directors. With more than 15 years’ experience in both financial consultative roles and in corporate level leadership, our role is to identify the possible exit opportunities, develop a strategy and help you manage the process throughout, working for you to get the best possible outcome.
When appointed, we work with you to do the following:
- Assess - Review the business' position and identify the issues that affect the Company and it’s directors personally
- Resolve - Work with the director’s to resolve the issues identified as much as possible.
- Structure - Structure, formulate and compile an exit plan.
- Manage - Manage the process in line with the plan, on your behalf, to allow you to focus on the day to day operations of the business.
For engagements where an Insolvency Practitioner is required, we will select one that we believe will yield the best outcome for the Company and its directors in the circumstances.
We work closely with a large number of Practitioners, and as such get access to discounted costs. This often means that we can offer director centric services for the same or very similar costs as going directly to them.