We understand the importance of cost-effective business rescue services in South Africa. Our primary objective is to ensure that the cost of the rescue process is justified by the financial savings achieved during the proceedings, such as reaching a compromise on debt due and securing improved terms with creditors.

To give you an idea of the cost of a business rescue project, we've created a scale based on the total reveue of your company:

• If your company has an annual turnover of ZAR 10 million or less, the minimum project rescue cost can be estimated at ZAR 75,000.

• If your company has an annual turnover in excess of ZAR 10 million, the project rescue cost can be estimated at 2% of turnover.

The prescribed maximum basic remuneration for business rescue practitioners as per Regulation 128 are as follows:

• Small company: ZAR 1,250 per hour (inclusive of VAT)

• Medium company: ZAR 1,500 per hour (inclusive of VAT)

• Large company or state-owned company: ZAR 2,000 per hour (inclusive of VAT).

Keep in mind that drafting a business rescue plan typically takes around 60 hours, and our professional fees are charged at the prescribed tariff as per Regulation 128. For instance, for a small company, the minimum fee for drafting a business rescue plan can be estimated at ZAR 75,000 (60 hours * ZAR 1,250 per hour). This minimum fee remains constant regardless of the scale of the rescue project.

Please note that these percentages and figures are approximate and may vary depending on the specific circumstances of each case. The quality of your financial information is key to saving costs, as it helps streamline the process. It's crucial for companies to work closely with our qualified professionals to develop a customised plan and budget based on their unique situation.

A deposit is required for our business rescue services due to the following reasons:

Time and effort commitment: Drafting a business rescue plan involves a significant investment of time and effort by our team of professionals. A deposit ensures that our team is adequately compensated for the initial work involved in developing the plan.

Expertise and resources: Our professional fees are, (Small company: ZAR 1,250 per hour, Medium company: ZAR 1,500 per hour and Large company or state-owned company: ZAR 2,000 per hour), reflecting the high level of expertise and resources we provide. The deposit helps cover these costs upfront, allowing us to allocate the necessary resources to your business rescue project from the outset.

Minimum hours: As it takes approximately 60 hours to draft a business rescue plan, a deposit ensures that we can dedicate the minimum required hours to your project. This enables us to provide a thorough and comprehensive plan tailored to your specific situation.

Financial security: A deposit provides financial security for our team, ensuring that we are able to continue offering high-quality business rescue services to companies in need.

Client commitment: By requiring a deposit, we ensure that clients are committed to the business rescue process. This helps facilitate a smoother and more effective working relationship between our team and the company in need of assistance.

Given that the minimum fee for drafting a business rescue plan is ZAR 75,000 (60 hours * ZAR 1,250 per hour), a deposit of ZAR 50,000 is a reasonable and fair requirement. This deposit allows us to commence work on your business rescue project with confidence and dedication, while also reflecting our commitment to providing high-quality services tailored to your specific needs.

Absolutely! We encourage you to have a conversation with us before initiating the business rescue process. This allows us to better understand your specific circumstances, answer any questions you may have, and provide guidance on the most suitable approach for your business. Please note that we only start charging for our services once you have elected to commence the business rescue proceedings, and our initial consultation is provided at no charge. Feel free to reach out to us, and we'll be happy to assist you in making an informed decision about the business rescue process.

The success of business rescue proceedings depends on various factors, such as the financial health of your company, the viability of the proposed business rescue plan, the level of cooperation from stakeholders, and the effectiveness of the business rescue practitioner. While we cannot guarantee the success of every business rescue process, our experienced team of professionals will work diligently to develop a tailored plan to address your company's unique challenges and strive to achieve the best possible outcome.

Keep in mind that early intervention and a proactive approach are crucial to increasing the likelihood of a successful business rescue. By collaborating closely with us and providing accurate and timely financial information, you can improve the chances of turning your business around and securing its long-term viability.

Having the South African Revenue Service (SARS) as a creditor can be a cause for concern, as it may indicate that your business is experiencing financial difficulties or has outstanding tax obligations. However, this does not necessarily mean your business is in serious trouble. A well-structured business rescue plan can address these issues and help you navigate the challenges associated with having SARS as a creditor.

During the business rescue process, we will work closely with you to develop a viable plan that includes negotiating with SARS and other creditors, ensuring compliance with tax obligations, and implementing measures to improve your company's financial health. By engaging in open communication with SARS and taking a proactive approach to resolving outstanding issues, your business may still have the potential to overcome these difficulties and achieve long-term success.

The duration of the business rescue process can vary depending on the specific circumstances and complexities of your company's situation. In general, the development and implementation of a business rescue plan may take anywhere from a few months to over a year.

Factors that can influence the length of the process include the nature of your company's financial challenges, the level of cooperation from stakeholders, the complexity of negotiations with creditors, and the time required to implement necessary operational changes. Our team of professionals will work closely with you throughout the process to ensure that it proceeds as efficiently and effectively as possible, with the ultimate goal of achieving a successful outcome for your business.

IBusiness rescue and turnaround are both processes aimed at helping companies recover from financial distress, but they differ in their approach and scope.

A business rescue is a formal, legally-driven process governed by the Companies Act in South Africa. It involves appointing a licensed business rescue practitioner to oversee the development and implementation of a comprehensive rescue plan. The practitioner works with the company's management and stakeholders, including creditors, to restructure the business and negotiate new terms for debt repayment. During the business rescue process, the company is granted temporary protection from legal actions by creditors, allowing it time to focus on implementing the rescue plan and returning to solvency.

On the other hand, a turnaround is an informal, management-led process aimed at improving the company's operational and financial performance without the need for court intervention or legal protection. A turnaround strategy typically involves a thorough assessment of the company's current situation, followed by the implementation of measures to cut costs, increase efficiency, restructure debt, and enhance revenue generation. While a turnaround may be less disruptive and time-consuming than a business rescue, it does not provide the same level of legal protection and may require more active involvement from the company's management.

In summary, while both business rescue and turnaround strategies aim to rehabilitate struggling companies, they differ in their level of formality, legal protection, and the extent of external involvement in the process. The choice between these two approaches depends on the specific needs and circumstances of your company.tem description