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What is administration good for?

What is administration good for?

An administration procedure effectively stops an out of control train in its tracks.

An administration is good for when you are under financial pressure and do not have a lot of time. Typically it is used to give you some breathing space whilst all the options are considered. 

Administration might be a better option than liquidation. As regulated administrators, we have the power to trade a company giving us the ability to sell the business as a going concern or other options to hopefully maximise realisations for everyone.

If the best option is to sell the business then all of the company’s employees will transfer across to the new owners. Although this is good news for the employees it is not always good news for the buyer as they will not be able to pick and choose who they take on.  Sometimes this can deter a potential purchaser from buying the business or it might result in a reduced sales price. 

Administration can be used to:

  • Avoid the compulsory winding up / liquidation of a company and cessation of trade. 
  • Maximise realisations
  • Rescue part or whole of the business, including protecting employee jobs.

David Kirk ACA FABRP

David Kirk

David Kirk is a Chartered Accountant and Licensed Insolvency Practitioner.
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Business Rescue
"David Kirk helped us with an Administration to rescue the business. He did exactly what he said he would do. It has worked out very well."
Chris Pratt of Elecsis Ltd
Business Renewal
“You made a very difficult time much easier for us.”
R Johns
Business Renewal
"It was a very difficult decision to make to go into Administration but now I am so glad we did it. David and his team were great thank you."
Jacci Dellaway of Baylift Services Ltd
Business Recovery
"We were cornered and thought it was the end of the business after 20 years but he got us out of it."
Lynne Firman of Just Beds Ltd
Business Rescue
“At the initial meeting you told us the good and bad things that can happen and were honest and told us to watch out for. No one else had done that.”
J White