Administration and pre-pack administration are dealt with by insolvency practitioners (“IPs”), however the key difference with a pre-pack administration is that the terms of the sale of the business and any assets of the company are negotiated and agreed before the IPs are appointed as administrators.
The purpose of this is to allow the business to be sold as a “going concern” without interrupting the business activities, maintaining the value of any assets owned by the company and, in many cases, employees keep their jobs and continue to operate the business.
Our legal team has many years’ experience in this field acting for IPs on the sale of the business and assets of companies going into administration. They can provide cost-effective, swift and pragmatic advice to allow the transaction to complete within usually very tight deadlines. Although more commonly we act for the IPs, we also advise buyers of the businesses and assets.
As this type of transaction will usually involve the transfer of employees, we work closely with our employment law specialists to ensure clients receive comprehensive advice so that the transaction runs smoothly to a swift completion.