review of business rescue practitioners - october 2015
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Practitioner Analysis Distribution
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These Stats were extracted in January 2015 from the CIPC database and do contain errors and anomalies were BRP have not updated information or corrected errors.The data does not reflect the number of BR underway or the distribution between practitionersMarket size can be estimated from the Enterprise size for licences but duplication and multiple appointments skew the outcome.
Practitioner Analysis per CIPC download January 2015
Total Gauteng Free State Limpopo Eastern Cape Western Cape Northern Cape Kwa Zulu Natal North West MpumulangaJunior 57 29 1 1 6 8 0 6 4 2Experianced 84 44 4 3 4 16 0 12 1Senior 71 42 0 0 2 15 0 10 1 1
212 115 5 4 12 39 0 28 6 3
On average the Free State lodge 15 applications per annum since 20011, There +_ 1000 rescue to date CIPC Oct 2014
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By Profession
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Lawyers represent the largest group at 47% followed by Accountants at 38%Business consultants and others make up about 15% 52% of the market may have little or no financial knowledge and rely on professional support from accountants in preparing aspects of the plan. This negatively impacts their ability to assess the viability of the plan
Of the 80 accountants 25 (31%)disclose that they are CA(SA).49% or 34 of the Accountants hold Senior Licences which is 34 out of 71 senior licences* (36/73 if Matuson is correctly allocated)
TMA members who are BRP licence holders is outstandingNumber who hold Advanced Course in Business Rescue Law is not available, SAICA has offered no guidance on many of the key issues.
Accountant 80 37.7%Lawyer 90 42.5%Liquidator/ lawyer 10 4.7%Business consultant 22 10.4%Other 10 4.7%
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Rate of growth in practitioners
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Year of registration
2011 70
2012 64
2013 42
2014 36
2015
212
The first year of registration was the highest number of licences issued.
The rate of new licences has declined every year since then.
New licences have also tended to be Junior Licences. 8 experienced, 1 senior and 27 Junior in 2014
This indicates larger assignments flow to registered Senior licences.
Senior licenses and bringing Junior licensees into the business as Practitioners, or more smaller firms are using Business Rescue
CIPC does not indicate active engagements or number of engagements including dual appointments
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The Market in 2015/16 Providers of services and CapitalThe Body Of Practitioners is diverse and un regulated
Law Society SAICA probably has the best code of ethics and rules of conduct Un regulated Practitioners TMA-SA still developing infrastructure and approach
The Capital Markets are wary and defensive in approach Consolidate surety and debtor covenants into one approach Hard line tactics from some banks Approved panels in the Big Four Banks
In the long run a Company can only survive if it is solvent and adds value to its shareholder
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