We’ve just had a call from the liquidators of a business we were asked to value about 12 months ago.
We’re disappointed for the directors and staff that it’s come to this but not really that surprised. Even a year after the event the issues that really struck us included:
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The accounting records were not up to date and pretty messy
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The directors were not all on the same page
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A manager, who was not an equity partner in the business, was often asked to do the ‘dirty work’
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Director’s loan’s terms and conditions were not documented and some elements not properly recognised as liabilities of the business
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Despite deteriorating results the expensive trappings of boats and cars were fixtures