Deal Insight Series:

Buying a business out of administration

In this video of our Deal Insight Series, serial entrepreneur Jonathan Jay talks about buying a business from administrators.

The transcript of the interview follows:

You’ve bought business in administration; how do you find the process?

Buying a business from administrators takes courage, because you can only do limited due diligence. You cannot meet the management team because the business is being operated by the administrator, and there is a diminishing value. Even every day, there can be a diminishing value. You might have staff walking off with the customer database and setting up as the competition. You are in a blind auction, you don’t know who else is bidding, and everything moves very, very quickly. The very best advice is to have a lawyer who has a relationship with the IP (insolvency practitioner), or to have a pre-existing relationship with the insolvency practitioner yourself. It takes nerves of steel to do, it but the wonderful thing about buying a business from an administrator...

The full video and article is available to our members, click here to view our membership options.

-------

Business Sale Report have been providing our members with business acquisition opportunities and insightful resources since 1995.