Pre-Packaged Administration
Save your business by a seamless transfer to a new company.
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Benefits Of Pre Pack Administration:
The primary benefit of a Pre Pack is that the Company is able to gain the same protection from legal action provided by Administration whilst also taking proactive steps to save the business of the Company. A Pre Pack ensures that your business can continue seamlessly throughout the Administration process after a rigorous marketing process to ensure best value has been obtained.
When Is A Pre Pack Administration Appropriate?
Pre Pack Administration is often the best course of action if one or more of the following factors apply:
- Some or all of the underlying business is viable and there is a desire to rescue it;
- The value of the business would be damaged by any interruption to trade;
- Customer loyalty and the goodwill or intellectual property of the business are directly linked to its current Directors and management;
- The business has insufficient cash flow to enable an Administrator to trade the business whilst a third-party buyer is sought.
If one or more of these factors apply to your business then it is likely that Pre Pack Administration will be viable option and is worth exploring with an Insolvency Practitioner.
How A Pre Pack Administration Works
When you have decided that Pre Pack Administration is the right course of action for your business we will complete a formal asset valuation and prepare a sale and purchase agreement together with formal notices for our appointment as Administrators. At this stage, we will also deal with the transfer of any leases and hire purchase agreements.
When we are happy that all aspects of the Pre Pack have been agreed, we will arrange for the sale to complete and for our appointment as Administrators to be formalised. The purchaser is then free to trade forward in the new business, free from the historic liabilities of the Company in Administration.
A Pre Pack typically takes between 1 and 4 weeks to complete from initial discussions to formal sale of assets to the purchasing company. The exact amount of time taken depends on the level of creditor pressure and the complexity of the business and its structure.
The cost of a Pre Pack is based on the value of the assets to be purchased and complexity of the Company to be dealt with. This value is determined by valuation agents who specialise in valuing assets in insolvency processes. If the asset value is considerable, it can be possible to agree payment over a deferred period provided the return to creditors is secured and preserved.
Alessandro Sidoli
Licensed Insolvency Practitioner
Provides immediate protection against recovery action by creditors and ensures the business continues seamlessly without disruption to customers or staff.
Our Service
When you get in touch with us, you will speak directly to a licensed Insolvency Practitioner from the outset. We will take the time to understand your Company’s financial position, what your future intentions are for the business and ultimately what outcome you are hoping for.
Based on this, we will be able to advise you on whether Pre Pack Administration is the best course of action and if so, the steps required to make it happen. Due to the short time frame in which a Pre Pack is agreed and completed, we will always offer to meet with you at your premises and will take you through every step in detail. We will also keep you up to date with details of progress and of the time frame and costs throughout the process.
Client Testimonials
My business was in trouble and I really did not know what to do. Company Advice Centre explained all of the options available to me in a manner that was easy to understand. I was able to decide on the solution that suited me and my business without being put under any pressure and was supported throughout the whole process.
When I called Company Advice Centre my business needed urgent help. I had received a winding up petition and a threat of bailiff action. When I explained the situation, one of the Insolvency Practitioners at Company Advice Centre came out to see me in person the next day. Because of this fast action I was able to place the company into Administration and save the business.
The team at Company Advice Centre really took the time to understand my situation and were always quick to help when I had any questions. It wasn’t an easy decision to close my business but having the support Company Advice Centre provided really helped me to move on.