This will depend on the current market conditions relating to the business sector.
An Insolvency Practitioner is required to achieve the best possible price for the business and assets and will be guided by the agents who undertake the professional valuation, as well as taking a number of other factors into consideration.
We can provide guidance regarding the anticipated expectations of the Insolvency Practitioner and negotiate the purchase price on your behalf.
It is possible to exclude some assets from your offer.
In certain circumstances the Insolvency Practitioner may consider accepting part payment by deferred consideration, however, a guarantee or some form of security is normally requested to support the deferred amount.
We can help with the negotiations regarding the payment of the consideration.
No, once a company goes into Administration, Administrative Receivership or Liquidation all of the company’s liabilities stay with the company, with the exception of the employees TUPE claims, which will transfer to the phoenix company if there is a going concern sale.
If you wish to take over assets subject to hire purchase or lease agreements it will be up to you to negotiate new terms with the HP or leasing companies.
The Administrator, Administrative Receiver or Liquidator will only contract to sell what ever the company has good title to and will not give any warranties or guarantees regarding the ownership of the assets you will be purchasing, however, this is reflected in the price you will be paying for the business and assets.
Freehold premises
Leasehold premises
Yes. If they are owed money by the failing company they will receive formal notice of the administration, administrative receivership or liquidation of the company. You are also required to advise them of the involvement of the directors of the failing company in the phoenix company, as outlined in more detail under the restrictions on the use of the company name.
No, however, if they owe the failing company money then the Administrator, Administrative Receiver or Liquidator will write to them requesting payment of the outstanding amount unless you purchase the debtors.
It is sometimes possible to enter into an agreement with the Insolvency Practitioner to assist in the book debt collection, which would mean that you could manage the ongoing relationships with customers.
This can often enhance book debt realisations which could be advantageous if you have given any personal guarantees in respect of the company’s borrowings.
If the business is purchased as a going concern, all of the employees and their accumulated rights transfer to the new company. It is not possible to “cherry pick” which employees you would like to transfer.
We would strongly recommend that legal advice is taken regarding the employees’ rights and the potential liability to the new company.
If necessary the whole process can happen within a few days and is driven by the financial pressures that the failing company is experiencing and the need for the Insolvency Practitioner to protect the assets for the creditors.
We have access to funders who understand the pre-pack process and are able to release funding within the short timescale required.
Use our Online Enquiry Form or Contact Us on 0800 0735353 to arrange an initial visit with one of our consultants.
