Life-line out of troubles

Article Abstract:

The company voluntary arrangement (CVA) was introduced to allow sound companies surmount past problems and loss. This concept is exclusively applicable to businesses with promise of growth and whose only weaknesses should be these past experiences. Implemented through the Insolvency Act of 1986, CVA allows creditors and debtorcompanies to reach formal agreements that provide for either debt reduction or credit-period extension. Intended as a simpler and easier-to-use version of thecompromise or arrangement provision of S.425 of the Companies Act of 1985, CAV,however, has not been widely used in the UK as a corporate financing technique.Ernst & Young identifies nine steps to be taken in completion of the CVA method.

Contracts, Corporations, Corporate finance, Debtor and creditor

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Getting a fix on the MBO position

Article Abstract:

Management buy-outs (MBOs) is now commonplace in the UK business community. In the 1980s, the value of MBO deals reached about 6.5 billion pounds sterling. Scotland had consistently high market shares for the region as 78% of its MBOs are successfully concluded. One major reason for the continued growth of the UK MBO market is that most companies know corporate management is the best buyer of a business. Another reason is the knowledge of divesting entities that management will efficiently run a business it owns. Buy-out transactions must be prepared as early as possible to minimize problems and ensure its successful conclusion.

United Kingdom, Planning, Acquisitions and mergers, Management buyouts

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The growth factor

Article Abstract:

Factoring companies typically provide short-term financing to companies by assuming their trade debts and accepting both the credit risk and the responsibility for debt collection. Factoring companies usually provide cash of up to 80% of the invoices held with the balance of the credit, less the service charge, being paid once the factor receives payment from the client. Clients are typically growing small businesses that are caught with temporary cash flow problems. Factoring has evolved into a mature financing industry which now has a turnover of around 11 billion pounds sterling.

Short-term business credit, Evaluation, Services, Commercial finance companies, Factoring (Finance), Commercial credit, Accounts receivable

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