A pre-pack administration deal is the pre-arranged transfer of a business in its entirety or the sale of the company’s assets to a buyer, negotiated through an administrator prior to the public notification of the administrators being appointed. Many people often become frustrated when contacting administrators about distressed businesses they are interested in purchasing, only to discover that the business has already been sold in a pre-pack deal organised by administrators.
This frustration is understandable, and often warranted, as many have argued that some distressed business deals would have had better outcomes for creditors if the administrator had advertised the business to a wider range of potential buyers. Many of our long-term subscribers understand the administration process and are able to turn negative pre-pack situations into more positive acquisition outcomes further down the line.
Using daily distressed notifications, resourceful subscribers are successfully contacting the administrators of distressed companies that present viable turnaround potential and directly lodging their interest, not just for the business in question but also for future distressed companies that may be in similar situations. Instead of being discouraged by the news that a business has been sold in a pre-pack deal they are using this knowledge as an opportunity to put themselves forward to administrators as suitable candidates for future opportunities.
It is this foresight and having the tools at hand to find distressed opportunities that has led many of our subscribers to achieve successful business turnarounds over the past few years.
By providing administrators with your acquisition profile you can drastically increase your chance of success with a distressed acquisition, placing yourself in the best possible position to be the party benefitting from a pre-pack deal in the future.
Insolvency practitioners are tasked with finding the most suitable buyers that are able to pay off the majority of creditors, and keep the business running as a going concern. Insolvency practitioners often factor in any relevant experience candidates may have that would positively support their ability to help the distressed company return to profit, so providing them with background information about yourself can be key to establishing an ongoing relationship.
Important things to keep in mind:
An excellent opportunity exists to purchase the business and assets of a well-established festival business that has built up a successful annual festival in the South East of England. Offers invited.
A sale will be executed at the earliest opportunity. All expressions of interest must be registered by no later than 22 July 2020. An excellent opportunity exists to purchase the business and assets of a well-established commercial lighting contracto...
An opportunity to acquire a UK-based telecoms and IT multi-layered services provider delivering leading edge services to contracted telecoms partners. Successful model operating for over 17 years, in 3 different countries. Significant professional fr...
Sign up to receive our acquisition alert emails to get your FREE guide
Business Sale Report is your complete solution to finding great acquisition opportunities.
Join today to receive:
All this and much more, including the latest M&A news and exclusive resources