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What is pre-pack administration good for?

What is pre-pack administration good for?

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

A pre-pack administration helps the train continue on its journey smoothly without having to stop.

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.

In addition to the above, the benefits of a pre-pack administration:

  • Helps retain the maximum goodwill before the administration takes place and becomes public.
  • Saves on potential substantial costs that could be incurred during the normal administration where the administrators usually trade a business post appointment in order to sell part or the whole of a business on a going concern basis.
  • The business can be transferred almost seamlessly ensuring a continuity of trade.
  • It helps to preserve customer and employee confidence.
  • It can be very effective for a business whose value is mainly in its goodwill e.g. a legal practice, advertising agency or high tech businesses.
  • A pre-pack can happen very, very quickly.

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 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
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