Besides the advantages of a company voluntary arrangement, there are also possible disadvantages. First of all, there is no requirement for the management team to change. As such, there is no provision for a way to avoid encountering the same problems or mistakes that got the firm into financial problems in the first place. It may be reasonable to consider injecting fresh ideas by employing new members to the team.
Secondly, implementation of a company voluntary arrangement will most certainly affect the credit rating of the company. This means that it will not be easy to get additional finance from banks in due course of the arrangement.
However, despite these probable setbacks, a company voluntary arrangement as a business rescue instrument is quite considerable, especially because no investment is required for implementation. This is a major advantage because at such times, money is almost certainly not readily available to the organization anyway.