FAQ's

How much will it cost us to buy back the business?

We will negotiate the price on your behalf and due to our experience in this regard, you can be assured that you will get the best deal possible.

An agent will value the assets and advise the Insolvency Practitioner who has a statutory duty to maximise realisations for the benefit of creditors. We will ensure that we frame the transaction in such a way as to maximise your benefit.

Can some assets be excluded from the transaction?

Yes, you can usually exclude which ever assets you wish.

Do we have to pay it all at once?

We can often negotiate payment by deferred terms, however, a guarantee or some form of security is normally requested to support the deferred amount.

We will assist you with these negotiations.

What happens to the company’s liabilities?

When a company enters insolvency proceedings, all of the company’s liabilities stay with that company, with the exception of the employees TUPE claims, which will transfer to the phoenix company if there is a going concern sale. Therefore the new company will have a clean slate.

Do I have to tell the suppliers?

Yes, the Insolvency Practitioner will circularise all creditors.

Do I have to tell the customers?

No, however, if they owe the failing company money then the Insolvency Practitioner 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.

What happens to the employees?

If the business is purchased as a going concern, all of the employees and their accumulated rights transfer to the new company. We would strongly recommend that legal advice is taken regarding the employees’ rights and the potential liability to the new company.

What is the timescale?

If necessary the whole process can happen within a few days. In other instances it is preferable for the transaction to be put in place over a longer period. It is totally dependent on the individual circumstances of the failing company.

We will assist you in the process of putting the finance in place within the necessary timescale. We have links with lenders who are completely familiar with the pre pack process.