Hiring an insolvency practitioner for your company is a very critical decision. You may be in search of an insolvency practitioner to close your company or seeking help to turn an insolvent company around to restore it to profitability.
Your choice of an insolvency practitioner determines how effectively you may be able to achieve the desired outcomes for the company. It also affects your overall experience of the process in achieving that desired outcome. Insolvency practitioners have several various roles, but they all involve working with insolvent companies. They may be included in structuring and overseeing the closure of your business to achieve the best result possible for the business’s creditors.
Alternately, they may be involved in restructuring the business or negotiating agreements with its creditors so that it can work towards profitability again. Ultimately, insolvency practitioners work with insolvent firms to achieve the best possible outcome, given the specific circumstances. The following are things to consider while selecting an insolvent practitioner:
Licensed
Insolvency practitioners must be licensed to practice liquidation activities.
There are numerous Recognized Professional Bodies (RPBs) who can license insolvency practitioners. Only licensed practitioners are legally allowed to handle many of the functions required in insolvency proceedings, such as acting as the administrator of a company, liquidator, or supervisors of a voluntary company arrangement.
Experience
It will help if you have an initial meeting or conversation with any potential insolvency practitioner that you are considering hiring. During this conversation, the insolvency practitioner should ask for clearance about the details of the business’s situation and discuss a possible way forward that may be appropriate concerning that company. It will help if you get to know how much experience they have in dealing with similar jobs. If you do not think they are sufficiently experienced to deal with the matter, carefully consider whether you feel it is appropriate to engage them.
Charges
It will help if you contact a few insolvency practitioners to ask for an estimate of fees for the course of action you are seeking for the business. Many will offer an introductory, no-obligation consultation free of charge. It should give you a good idea of expenses and fees. Be aware, though, that the cheapest choice is not always the best.