The economy can be an unpredictable beast but what is predictable is that a number of UK businesses will go into administration in the coming years. And while this may be an unfavourable aspect of the economy, it presents a real opportunity for canny buyers to pick up distressed UK businesses at a substantial discount to market value.
Here, we’ll guide you through the process of buying a business or its assets after it has entered administration, and give you some top tips for saving time, money and unnecessary headaches.
The tacticsWhen buying a business out of administration, time will be of the essence. You will have to move very quickly if a golden opportunity comes your way and you will have to forego some of the standard due diligence and legal processes that we would otherwise recommend. For this reason, you will inevitably have to take a more commercial view on some parts of the deal.
The realityRegardless of the reasons for the failure, there are a few other things to bear in mind when buying a company out of administration. First of all, you need to consider what type of business you want to buy. Set yourself some criteria and stick to them. Ask yourself what part of the country you want the business to be located in. Also, what is your ideal company size? And what are its key markets?
This practice, which was established over 40 years ago, is available for sale due to the impending retirement of the practitioner.
This practice, which was established in the 1980s, is available for sale due to the impending retirement of the partners.
This practice, which was established around 2003, is available for purchase due to the impending retirement of the partners.
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