Business Rescue Terms

For such a relatively small world, the business rescue and turnaround management industry in the UK has generated an extraordinary variety of acronyms in a very short space of time. So this article provides a guide to who’s who and what’s what in the world of business rescue and turnaround management consulting:

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ABRP – rather inelegantly often pronounced as sounding like ‘a burp’, the Association of Business Recovery Professionals is the trade body for the UK insolvency profession (also known as R3) but now avoids the ‘I’ word having changed its name from SPI as part of the process of widening membership to the turnaround profession by assisting with the set up of the IfT (nee STP). Most IPs, see below, will be members.

ACTP – Association of Certified Turnaround Professionals, is an American based body associated with the TMA which accredits turnaround professionals by way of a professional exams based on American law and practice (although there have been some steps taken to develop a syllabus for the UK as well).

CRO – Chief Restructuring Officer, a turnaround professional appointed to a company specifically to take overall charge of all aspects of its turnaround project.

CTP – Certified Turnaround Professional, a qualified member of ACTP above and therefore probably still an American.

CVA – Company Voluntary Arrangement is an Insolvency Act business rescue procedure that allows a business to agree a binding compromise deal with its unsecured creditors in full and final settlement of its debts.

IBR – Independent Business Review is an assessment of a business carried out on behalf of a lender by the insolvency or business recovery arm of a firm of accountants.

IFT – Institute for Turnaround, originally known as the STP, the IfT is a body set up with R3’s assistance to accredit turnaround professionals in the UK through a rigorous case study and referencing process. It and its members therefore broadly represent the turnaround professionals in the UK. It has a national membership and a regular program of regional meetings as well as an annual conference. It now operates independently from ABRP/R3, which is rumoured to be thinking of setting up its own special interest group of IPs specialising in business rescue and turnarounds.

IM – Interim Manger, a usually highly overqualified individual hired at manager level on a temporary basis, usually to deliver a project or cover for a vacancy.

IP – Insolvency Practitioner, an individual licensed to take formal insolvency appointments so as to act for example as a Liquidator or an Administrator.

IPA – Insolvency Practitioners Association, an independent insolvency licensing body that operates in addition to the accountancy institutes, the law society and the government.

JIEB – Joint Insolvency Examinations Board are the exams required to obtain an insolvency licence.

MTA – Minerva Training Associates is the only UK based training company which specialises in providing practitioner led turnaround training courses for people entering or already within the turnaround profession.

R3 – stands for Rescue, Recovery, Renewal, and is the business rescue friendly trading style adopted by ABRP when it stopped being SPI.

SIP 16 – Statement of Insolvency Practice 16 sets out the information an Administrator will need to subsequently disclose where they have completed a pre-packaged sale of a business on their appointment.

SofA – Statement of Affairs is the document prepared by directors in an insolvency setting out the businesses assets at their expected realisable value and the full value of its creditors so as to show the net deficit. Variations of this will often be prepared prior to insolvency, such as say an estimated outcome statements or an estimated security position included in an IBR to show the a secured creditor such as a bank how they stand both now and in various potential scenarios.

SPI – Society of Practitioners of Insolvency (you do have to ask what would have been wrong with Insolvency Practitioners Society instead?) is the old ‘I word’ name for ABRP/R3.

STP – Society of Turnaround Professionals was for many years the name of what is now IFT, until it was spotted that the makers of a well known oil additive might have a bit of a problem with this branding – just goes to show that everybody makes mistakes…

TD/TE/TP – Turnaround Director/Executive/Professional, an individual who undertakes business rescue and turnaround work, the modern term for what used to be known colloquially as a ‘company doctor’.

TMA – Turnaround Management Association is the UK chapter of what is principally an American (although there are other chapters around the world) organisation. Very much a broad church association of a range of professionals and service providers interested in the area of turnaround, it has a national structure and runs a variety of networking events as well as an annual conference. It therefore represents the wider area of turnaround management in the UK.

Of course the information contained in an article like this can never be a full statement of the legal position as the relevant laws are complex and liable to change. This article can only therefore be a general guide as to the issues involved and as these can have serious implications you should always seek appropriate professional advice on your own particular circumstances before taking any action.