For a CVA to be considered an appropriate solution there are several aspects to consider:
- Is the company able to regain profitability and increase turnover?
- Can underlying problems be solved and current difficulties overcome?
- Has the business received new capital investments and whether future capital injections are to be expected?
- Can the employees adapt to the situation and implement essential changes to secure the business in the future?
- Is the proposed CVA financially viable for the company considering future liabilities?