Business Rescue is a relatively new process to the South African business landscape found in the Companies Act. It has now been a part of our legal landscape for just over 6 years. The process has assisted many businesses to become profitable once again.

The process of Business Rescue is in essence a business turnaround bolstered by the protection offered by the Companies Act. This is done to ensure that the struggling company is not attacked by its creditors while attempting to recover.

The actual aim of the process is clearly stated in the Companies Act. This purpose is stated as returning the company to a profitable and sustainable entity. If that is not possible, then at least the creditors need to get a better dividend from the process than what would have been possible from a liquidation. While the second purpose is great, we aim to return the company to a profitable and sustainable entity.

The directors must carefully consider the decision to place a company under Business Rescue. The process is an intense one and might not always be the best for a company. The first and most important step is to measure the financial distress of the company. If the company can prove that it is not experiencing financial distress, then this process might not work. Should the company need assistance, but not a business rescue process, then a business turnaround might work well.

Once the directors have determined that this process is the right one to opt for, then they must identify a business rescue practitioner. This step is probably the most critical of all. The business rescue practitioner must have the best intentions for the company’s survival at heart.


The rescue practitioners of Vitalis Consulting always perform a business vitality assessment before placing any company under Business Rescue. This assessment is performed to ensure that the company is currently in a position to be rescued. This assessment focuses on ensuring that this process is indeed the correct one to proceed with.

The success of a business rescue rests heavily on the co-operation between the practitioner and the directors. A good working relationship and respect ensures that the focus of everyone is on saving the company.

A Business Rescue process might be the right course of action to get your business back to profitability. If you wish for one of our consultants to contact you, please complete the contact form below: