Business Resuscitation Circular March 2014

Who do you know who could be interested in any of these opportunities?
Midlands crematorium supplier / maintainer seeks sale or investor (03/01)
Turnover £2.5m pa; maintenance contracts in place; owners may be willing to stay on in the business; cash introduction necessary.

Small East Midlands new and 2nd hand office furniture business for sale (03/02)
Turnover £70k pa; profitable; good customer base; £50k sought for quick sale (£30k stock included).

IT managed service company sought (03/03)
Data centre operator seeks bolt on business offering any of the following: data centre services; hosting and cloud services; storage management (data / file archiving) ; server estate management (virtualisation); disaster recovery; unified communications or managed networks.  Solvency/insolvency immaterial.   Would also consider partnership with a business needing a data centre.

Business process outsourcing firm sought (03/04)
BPO firm that focuses on back office outsourcing (finance and administration) wanted – e.g. mail and form processing; accounts payable and receivable processing; debt recovery and credit control.

Freehold ground rents sought (03/05)
Buyer seeks blocks of ground rents, anywhere in the UK

Part time payroll and admin assistant sought by firm of accountants – Redditch/Worcester (03/06)
Training can be provided, no prior experience required

BTW, the tax guy to whom I referred in the last circular has returned from his 2 holidays and is now holding early talks with a few firms.  If I’ve not yet come back to you, please bear with me.

A message for you accountants and lawyers….

Right now I’m seeing the banks hold on to money that isn’t theirs for far too long…

Particularly on liquidations, because they think they can get away with it.  And more often than not they do, because my fellow insolvency practitioners with ‘far too close for comfort relationships with the banks’ refuse to rock the boat with such powerful work providers – the fact that your shareholder clients will have to wait for their money is somehow of lesser importance to them than their next insolvency job from the bank. It’s a disgrace.

You see, when a company goes into liquidation, responsibility for dealing with an account passes to a special liquidation department – each bank has its own special name for these departments, but they are all the same regardless of the identity of the bank or in whatever part of the UK the department sits – their prime driver is to deprive your clients of their money for as long as they can, so they can use it themselves.

The tricks the banks are playing right now include:

  1. The account remains ‘in no man’s land’, inbetween departments for weeks.  Speak to your local manager and he’ll say he can no longer deal with things as ‘it’s been passed on’; speak to the liquidations department and they’ll say they haven’t yet got it – because they don’t have a reference, an open file, a responsible official, they can’t deal with it.  And no one knows where the papers are or when the case will be opened up.  And there’s me thinking that we lived in a digital age!
  2. Once the liquidations department have the file open, it will then be 4 weeks before they pick it up!  Even then they don’t deal with it purposely and conclusively – they look for every possible excuse they can to delay matters, sending out meaningless holding letters asking for information they should already have – say because it was sent to the local branch because that was the only allowable point of contact at that time.  They’ll ask for original copies of signed documents again.  They send letters second class.  They ignore the fact the liquidator’s appointment is already showing on Companies House records as a result of original copies they’ve received;
  3. When letters go in to them, they will sit in a pile until they come out for a response in a month’s time.  They will not prioritise.  They will not go and search for letters.  Letters sit in piles until they day they come out to be answered.  And then the rigmarole starts again.
  4. When, eventually, they are happy to send the money to you, there’s another black hole of about 3 weeks when you’re being told the cheque is being raised but no one knows quite by whom or when.
  5. Eventually the money does come out! By cheque, despite the fact we live in an electronic world!  Second class.  That’s assuming they’ve sent it to the right address.  Which isn’t guaranteed – and if this happens, the fun starts.

You see, the bank really does not give a damn about your client.  The fact they may have had a 25 year relationship with the bank is irrelevant to these departments.  They’re a number. The bank is targetted with making money, not to provide a service, and that means holding on to your clients’ money.  And your client will not thank you for introducing them to an IP who dances the banks’ tune, such that he cannot get his hands on his money.

When I deal with solvent liquidations, I refuse to dance to the banks’ tune.  I have a clear and proven strategy for avoiding their games entirely, which will see your clients getting their hands on their money NOW, not in 4 to 6 months time when the bank decides they can have it.

Why don’t you do your next client needing a MVL a favour and instruct me?

As always, to get in touch with me to express an interest in any of the opportunities listed above, e-mail me

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Thanks for reading….

Paul Brindley
Midlands Business Recovery

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