What’s the difference between a Business Sale and a MVL?
14 December 2022
At FTS Recovery we’re often approached by accountancy firms whose clients are initially of the opinion that they need a Members Voluntary Liquidation (MVL). Whilst it’s a great option, and a 100% back stop in some cases, the terminal nature of the liquidation process does of course mean the closure of the business as well as additional claims needing to be met in full (e.g., redundancy or dilapidations crystallising). The same applies to solvent liquidation scenarios.
If the company’s viable but doesn’t have a no exit plan, then selling the business might just prove a better alternative.
We’ve completed business sales for numerous clients in this scenario. By selling their business they added significant additional monies (in some cases up to an additional £2m) to the shareholders’ outcome, over and above the bottom-line return option in MVL.
Don’t hide in fear of not understanding the process, make sure you get the right advice and the right outcome for your business/es.