Preventing business difficulties: diagnostic and out-of-court recovery plan

Situations calling for an out-of-court recovery plan

• An SME’s cash-flow pressures accumulate without a formalised forecast.
• A mid-sized company sees its tax and social security liabilities grow without a regularisation timetable.
• A decline in activity threatens the company’s balance, without a diagnostic of its causes.
• An executive identifies warning signs and seeks to act before any proceedings.
• Several creditors chase the company, without preparation of the exchanges with them.

Process

1. Purchase and onboarding. The client first acquires the intake form CV-18. ASKonsult then opens the secure exchange space.
2. Synchronous scoping. The first session, a 90-minute videoconference, takes place within 5 working days. It qualifies the urgency, identifies confidential information and sets immediate priorities.
3. Asynchronous collection. The company completes the form and provides its financial statements, aged balances and cash-flow plan. Written questions then flow in both directions.
4. Analysis and correction. The in-house engineering team diagnoses the causes and establishes a 13-week cash-flow forecast. It then identifies internal levers and out-of-court options, examined in a second 60-minute session.
5. Synchronous delivery. The third session, lasting 90 minutes, presents the recovery plan and the action timetable. ASKonsult then delivers the validated deliverable.

Deliverable

The deliverable opens with a diagnostic of the difficulties and their causes. A 13-week cash-flow forecast accompanies it. The out-of-court recovery plan then forms the core of the document. It includes internal measures, payment schedules and remissions to be requested, as well as preparation of the exchanges with creditors. Finally, an early-warning dashboard makes it possible to monitor the situation. ASKonsult delivers the whole set with the validated action timetable, at the end of a 3- to 5-week process.

Prerequisites

The package requires completion of the intake form CV-18. The company also provides its recent financial statements and its customer and supplier balances. In addition, the statement of tax and social security debts completes these documents. These elements form the basis of the cash-flow forecast and the diagnostic.

Frequently asked questions

How is the quote for the package established?

A qualification exchange precedes the subscription. It assesses, in particular, the number of entities and the structure of the liabilities. The special terms then set the scope, timetable, number of sessions, expected documents and deliverable. ASKonsult then creates the order on the basis of the quote. The first session then takes place within 5 working days.

Does ASKonsult negotiate with creditors?

No. The out-of-court recovery plan prepares the exchanges with creditors, without representation or negotiation on behalf of the client. The client thus remains the sole decision-maker on the steps taken. Likewise, the package includes no assignment as special mandatary or conciliator. The services are also subject to an obligation of means. No guarantee of result therefore attaches to the outcome of these exchanges.

When does the first session take place?

The first session takes place within 5 working days and lasts 90 minutes by videoconference. It first qualifies the urgency of the situation. It then identifies confidential information and sets immediate priorities. The other timeframes are indicative and run from receipt of a complete file. In addition, ASKonsult schedules the sessions in set time slots.

What share of the work takes place in synchronous sessions?

The package includes three videoconference sessions, 4 hours in total. The scoping and the debrief each last 90 minutes; the session devoted to options lasts 60 minutes. Between these sessions, the work proceeds asynchronously. The company provides its financial statements, aged balances and cash-flow plan through the secure space. Written questions flow in both directions.

Does the financial information provided remain confidential?

ASKonsult treats the information and documents provided as confidential, including financial statements and the statement of debts. They circulate only through the secure exchange space. Their use is also limited to the purposes of the package. This obligation survives the end of the relationship. In return, the client is responsible for the accuracy and completeness of the information it provides.

What follows the package?

The early-warning dashboard makes it possible to monitor the situation after the debrief session. For regular support, the Steering subscription (A-02) is intended for growing SMEs and mid-sized companies. It offers a point of support for handling day-to-day questions and checking directions. The client nevertheless remains the sole decision-maker on the measures adopted in the plan.

Out of scope

The package excludes any representation or negotiation on behalf of the client. Nor does it include any assignment as special mandatary or conciliator. In addition, insolvency proceedings and interim management fall outside the service. In the event of cessation of payments, ASKonsult refers the executive to an authorised professional. The out-of-court recovery plan thus falls within prevention.