TaxAssist Accountants
0800 0523 5550800 0523 555

CVA is tough option but beneficial in the long run

Date: 16th June 2009

A CVA could help keep businesses goingThe decision to take on a Company Voluntary Arrangement (CVA) rather than going into administration is a difficult decision to make but healthy in the long run.

That is according to R3, the Association of Business Recovery Professionals, which noted that the benefits of a business using CVA have arisen due to planned government action highlighting its advantages.

Steven Law, vice president of R3 and business recovery partner with Ensors, believed that companies could experience business recovery as a result of the process but not without difficulties in the interim.

He said: "I think [a CVA] is a tougher option. Everyone [has to] get used to the idea of dealing with a company in [a] CVA."

"[But] by keeping the company alive through the CVA it means that the [business's] shares are still alive and may even increase value in the future."

Mr Law went on to say that the company must not be on its "last legs" in order for a CVA to work.


Related Articles



0800 0523 555 TaxAssist Accountants Locations Map
TaxAssist Facebook TaxAssist Twitter TaxAssist Blog RSS

Newsletter for Small Business

Join our newsletter and receive tax news every month suitable for small businesses.

Testimonials

View all

Over the past 10 years we believed that if we wanted outstanding service we should use traditional large accountancy firms. Oh how wrong we had been! We had been charged high fees without any real value being added to the business.
DAVE THOMAS
Bluegrass Consultancy Ltd

© 2012 TaxAssist Accountants. All Rights Reserved. TaxAssist Accountants Buy Local Campaign TaxAssist Accountants Supports Round Table Childrens Wish TaxAssist Accountants - Interactive Media Awards 2010 Best In Class Winner