A typical time line of events
On average within two weeks of meeting the IP, a buyer is identified, sales contracts agreed in principal, the company placed into administration and the sale completed.
- Meet and subsequently instruct IP to help
- Solicitors help produce court documents
- Agents instructed to carry out marketing campaign and find buyer/approve sale to proposed existing buyer
- Company enters administration
- Administrators take control
Day 1 – Directors have free initial meeting with IP – IP ultimately recommends pre-pack administration after careful condensation of circumstances and eliminating alternative options
Day 3 – Directors second meeting with IP to discuss pre-pack administration in more detail and answer any remaining queries.
Day 4 – Directors instruct IP to proceed with pre-pack
(Where applicable IP speaks with debenture holder regarding strategy and ensures no issues with bank agenda or desire to appoint own IP)
IP recommends specialist agents to value assets and business and begin marketing campaign
IP recommends solicitors to begin drafting sales contract and administration application
Day 10 – Agents have identified purchaser or ratified sale to existing buyer
Day 11 – If proposed purchaser is connected, party IP refers proposed purchaser to Pre-Pack Pool
Day 12 – Solicitors have completed and approved draft contracts with proposed purchaser
Day 13 – Application lodged with court to place into administration
Day 14 – Order granted. Company now in administration. Administrators sign sales contract/s and business is sold.
Administrators take control of company affairs.