In an effort to reduce costs associated with the insolvency process for small businesses, the new insolvency law introduced in January 2021 also introduced a new type of insolvency practitioner and a new scope of its role.
A Small Business Restructuring Practitioner (SBRP), charged with administering the restructuring of a company.
All registered liquidators are automatically Small Business Restructuring Practitioners (SBRPs). Worrells has 26 registered liquidators/SBRPs across Australia.
Providing appropriate advice regarding a distressed business requires a specialised skill set and knowledge that is acquired through years of education and experience.
Furthermore, registered liquidators operate in a highly regulated environment and are subject to strict professional standards, accountability and ethics, unlike many “advisors” in the unregulated pre-insolvency market.
While SMEs may appear to have simplified affairs, in order to achieve a successful outcome in any business turnaround process, it is important for those managing that process to have the correct expertise, a well-planned and articulated strategy, and the ability to support all key stakeholders.