The first conversation is easier when the essential information about the business is in one place. The aim is not a perfect report, but as clear a picture of the situation as possible.
Start with the facts
Write down the most urgent difficulties, who the company owes money to and how its day-to-day operations are going. Summaries of receivables and liabilities, together with documents relating to key contracts, may be useful.
Distinguish information supported by documents from estimates. If an amount receivable is disputed or you do not know the exact payment deadline, note this in the summary. One missing piece of information need not prevent the discussion; it helps identify what needs to be completed.
Describe what has changed in the business
A brief timeline helps connect financial information with how the company operates. State when the difficulties began and what preceded them: late customer payments, loss of a contract, rising costs, financing problems or reduced sales. Also describe the actions the company has already taken and their effects.
Prepare a basic information pack
- The company's essential details, legal form and the people responsible for decisions.
- A summary of liabilities and receivables: counterparty, amount, payment deadline and details of any dispute.
- An overview of current income and spending, available funds and important upcoming payments.
- Key contracts, letters received and correspondence relating to urgent matters.
- A brief description of the resources needed to keep operating: employees, premises, equipment and key suppliers.
A concise description is enough for the initial contact. Agree how to share a larger set of documents with the person handling the matter, including a secure way to provide the data.
Decide what you want to ask
Identify the decisions you are unsure about and explain what you expect from working together. The exact documents needed for the assessment depend on the company's situation.
Consider what is urgent, which parts of the business you want to preserve and which changes you can prepare for. Questions may concern comparing scenarios, the order of actions, the scope of our work or communication with creditors. A written list helps make good use of the consultation.
Agree the next step after the discussion
A useful first discussion ends with agreement on which information to gather, which issues need analysis and who will prepare it. Keep a brief note of the arrangements. Do not treat an initial conversation as a complete assessment of every legal and financial implication: that requires a review of the documents and the circumstances of the specific matter.
This material provides general information. Assessing a company's situation and choosing a course of action require an individual review of its documents and the current law.
