Insolvency Business Sales
If, in spite of everything, a business has failed there will often remain valuable assets that can be sold to achieve distrubution for the creditors.
The insolvency practitioner will be looking to maximise the proceeds of sale. This may be achieved through a sale to the existing management (often by way of "pre-pack") or by means of a trade sale to a competitor, customer or the employees.
Insolvency sales differ from other business sales in a number of important ways:
- the timescale from offer to conclusion will often be extremely short (days rather than weeks or months)
- the buyer will generally take over few (if any) of the liabilities
- special rules apply in respect of employees
- there will be no assurances provided by the seller and no redress if the assets turn out to be worth less than had been envisaged
- the price payable will be a low one to reflect the risks being accepted by the buyer but should always exceed the break-up valuation
Please contact us for advice on any aspect of such sales.