Insolvency

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Funding
Why don’t more venture capitalists buy businesses out of insolvency?

According to recent statistics from the Insolvency Service, over 3,000 company liquidations took place in England and Wales during the third quarter of 2014. It may be the case that a number of these businesses were purchased either before liquidation or shortly thereafter but it is fair to assume that within these statistics, a fair proportion of businesses that offered attractive products of value have been let down by poor management or cashflow problems.

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Law
Wrongful trading vs insolvent trading

When a business is failing, bills are not being paid and problems are getting worse – it’s time to seek help and professional advice at the earliest possible opportunity. This is particularly important when business is still continuing; a director can be accused of ‘wrongful trading’ or ‘fraudulent trading’. In both cases the directors are at risk of being held personally liable for the debts.

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