Up until 31 December 2008, the statute of limitations for social security purposes has been set at 5 years. As a result, in case of a reclassification of benefits into remuneration and/or in case of a reclassification of a self-employed collaboration into an employment agreement, the company cost could increase significantly, also taking the interest rate and surcharges into consideration.
As of 1 January 2009, this statute of limitations for social security purposes will be reduced to 3 years. Nevertheless, it should be noted that
Mergers, acquisitions, disposals – even in good times it can be hard to realise the full value of a transaction. A tough economic climate typically triggers a host of problems, including underperformance, declining earnings, liquidity shortfalls and cash flow blockages. When companies exhibit symptoms of distress, early detection and swift, decisive action are the keys to restoring performance.
Banks and credit insurers are seeking ways to reduce credit exposure and liquidity risks, by cutting back on existing lines of credit and making new issuances much tighter and more expensive.
The old ‘cash is king’ has never been more true. Those management teams able to identify and drive excess cash out of the business will be in a much stronger position. Also during the due diligence phase of a transaction, this element can be considered to be of increased importance.
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