Corporate Recovery
- Description
- Tasks
- Skills
- Useful Knowledge
- Entry Qualifications
- Professional Qualifications
- Trends
- Resources
 (2)_employer_hero.JPG)
People working in corporate recovery are tasked with guiding businesses through troubled times. The business could have been underperforming for some time, or current economic conditions means that it is in a vulnerable cash state, with debts valued at more than its assets. Whatever the reason, corporate restructuring or declaring the company insolvent may be the only option remaining. Usually qualified accountants working with a portfolio of clients, your first aim would often be to help the company survive. This may be achieved through restructuring, which can involve streamlining operations, possibly salvaging some parts of the business and selling off other parts. You would look to turn things around and regenerate a more solid and successful business. In some cases, however, the only option might be to wind up the company, selling off assets to pay creditors. In this instance, you’d still be looking to secure the best possible outcome for stakeholders and employees, which can include recovering unpaid goods or money to pay lenders and suppliers.
Salary
Trainee level positions, often for graduates, start at approximately £22,000 per annum. With the right experience, qualifications and skills you could progress to senior roles and earn in excess of £70,000 per annum. This does not include potential bonuses and additional benefits. Salaries will vary considerably based on location and employer.
- Advising on the management of cash and working finance capital
- Renegotiating existing finance arrangements
- Assessing the future viability of each part of the business
- Advising senior managers and shareholders on areas where instant business improvements and cost savings can be made
- Presenting options to stakeholders, persuading them to buy into the most appropriate solution for their business
- Determining ways to generate cash fast, such as approaching potential investors
- Guiding the business through the insolvency or wind-up process, which may involve some account reconciliation to assist in preparing bad debt files
- Helping companies to realise their assets and representing your client at meetings with other creditors
- Arranging for goods and assets to be recovered and distributed to creditors and organising for a liquidator to sell off a company’s assets
- Working with banks and following up referrals
- Ensuring the company is complying with all financial legal requirements, industry regulations, organisational policies and professional codes
- Excellent interpersonal and communication skills
- Diplomatic and personable manner
- Initiative and an enquiring mind
- The ability to control and manage own caseload
- Confident negotiator, able to stand your ground at the Board table
- Good project management and organisational skills
- Attention to detail
- Tenacity when handling potential conflict situations
- Methodical approach to record keeping and reporting
It is likely that before entering a corporate recovery role you will have previously worked in accountancy, compliance or a legal cashiering function, so will have a basic understanding of the statutory reporting and debt recovery processes. A new entrant will not always be required to have this knowledge. Employers usually provide training to acquire skills for:
- Knowledge of insolvency rules and statutory requirements relating to corporate insolvency
- The process for applying for grants and preparing investor proposals
- How to prepare business forecast projections and business plans
- Full understanding of statutory insolvency documents
Traditionally, those who have entered a career in corporate recovery have a A levels, Highers or equivalent or a degree. People may also have already taken the Associate of the Institute of Chartered Accountants in England and Wales (ACA) or Association of Certified Chartered Accountants and Joint Insolvency Examination Board (JIEB) examinations. Consequently, any prior accountancy or legal work experience can be helpful.
Graduate training schemes offered by most large and mid-tier accountancy firms, which provide a route into corporate recovery, will typically ask for a 2:1 degree. Although any subject discipline may be accepted, maths, accountancy, business studies, economics and finance degrees may be more relevant. Certain degrees may provide exemptions from some of the professional accountancy examinations. Each employer will specify their own exact academic requirement and subject.
Entrants must be excellent communicators, numerate and confident taking the lead diplomatically in what can often be very serious situations.
People working in corporate recovery are usually qualified accountants with one of the following professional accountancy bodies:
- Association of Chartered Certified Accountants (ACCA)
- ICAEW (Institute of Chartered Accountants in England and Wales)
- Institute of Chartered Accountants of Scotland (ICAS)
- Chartered Accountants Ireland (CAI)
- Chartered Institute of Management Accountants (CIMA)
Employers may also ask employees to extend their insolvency knowledge by taking:
- ICAEW Certificate in Insolvency, which can be studied as a stand-alone programme or as an additional module to complement the ACA or Certificate in Finance and Business (CFAB) learning programmes. The Certificate will give you a solid foundation to study towards JIEB exams.
- Chartered Accountants Ireland Diploma in Insolvency
Corporate recovery is an area where a downtown in the economy reflects positively on the job prospects. But equally, if the economy is thriving, more companies are established, increasing competition and consequently business vulnerability. Increasingly, the growth in demand has been people with specific business review skills, which can lead to early-stage rescue work. People that are JIEB qualified are in constant demand, as are those that have played an integral role in turning businesses around, who can often forge successful careers as corporate financiers. Corporate recovery and insolvency teams are found within all major general practice accountancy firms (the largest can have insolvency teams comprising more than 800 specialists). Legal and specialist insolvency boutiques are other key employers. Although there are UK wide opportunities, the biggest teams tend to be located in London and other major financial districts.
