What businesses are most suitable for a CVA?

CVAs are most suitable for businesses that are fundamentally viable but burdened with unsustainable debt levels. Retailers, restaurants, and hospitality companies are common candidates because they often face high property costs and cyclical demand. Professional services firms, such as law practices or accountancies, can also benefit if cashflow is disrupted by late client payments. In general, a CVA works best when the company has a clear path to profitability, strong management, and creditor confidence. It is less suitable for businesses with severe structural issues, little prospect of future profits, or where creditor cooperation is unlikely. The CVA’s main advantage is that it preserves the business while returning more to creditors than they would receive in liquidation. Companies with diverse creditor groups, including HMRC, landlords, and trade suppliers, often use CVAs to manage complex liabilities through a single binding arrangement.