Pre Pack Administration
A legitimate way to restart your business by buying back the company without its debt
- BUY BACK THE ENTIRE COMPANY (OR SELECTED ASSETS)
- RESTRUCTURE YOUR BUSINESS WITHOUT THE BURDEN OF CURRENT DEBT
- MAINTAIN BUSINESS CONTINUITY AND MINIMISE ANY ADVERSE REACTIONS
Speak with one of our Pre Pack Administration specialists and find out the quickest and most cost-effective way to undertake the process.
Pre Pack Administration
A legitimate way to restart your business by buying back the company without its debt
BUY BACK THE ENTIRE COMPANY (OR SELECTED ASSETS)
RESTRUCTURE YOUR BUSINESS WITHOUT THE BURDEN OF CURRENT DEBT
MAINTAIN BUSINESS CONTINUITY AND MINIMISE ANY ADVERSE REACTIONS
Speak with one of our Pre Pack Administration specialists and find out the quickest and most cost-effective way to undertake the process.
We specialise in Pre Packs, helping Directors to restart their businesses, debt free, and at the lowest possible cost.
Find out how to make a Pre Pack Administration work for you.
Pre Pack Administration is a powerful restructuring tool for viable businesses struggling with debt
What does a Pre Pack help you do?
Regain control of your business, protect jobs, and preserve the value within your business – and it can be done quickly, normally within a few weeks.
So what actually is a Pre Pack?
It’s a legal insolvency process that allows a business to sell its assets quickly and efficiently to a new company, normally set up by the current directors, and provides business continuity and retained value.
What are the benefits for Directors?
- Business continuity and minimal disruption
- Regain control and preserve business value
- Job protection for staff and employees
- Reputation management
- Better return for company creditors
- Speed of completion
So how does it work?
There are three key requirements
- The company needs to be insolvent.
- An insolvency practitioner is appointed to administer the process.
- It must provide value for creditors.
The Pre Pack process
- A new company is set up to purchase the old company or its assets.
- The deal is negotiated and agreed before the insolvency practitioner is appointed.
- A financial assessment of the business is undertaken, the company assets are valued, and the business is discreetly marketed for sale.
- The administrator is appointed, and the sale immediately completes.
- The old company will usually be closed through a creditors voluntary liquidation.
You get one shot at this, you need to make sure you get it right.
There are strict legal guidelines to be followed
There’s a very defined process to be followed, getting it wrong can mean personal liability, fines, and Director disqualification.
Negotiating the right price
Knowing how to get to the right price for the company or its assets is a crucial part of the process, we’ll show you how.
Selecting the right insolvency practitioner
Selecting the right insolvency practitioner with the right experience and approach is also vitally important, we’ve got this covered for you.
The practical aspects
Having an experienced team on your side to help with aspects involving your creditors, landlord, utility suppliers and your bank is a proven way to maximise outcomes.
We are accountants and business advisors with a new approach to Pre Pack Administration
It puts Directors in the driving seat by removing the uncertainty and providing a proven roadmap to facilitate the process, minimise purchase prices, and greatly improve outcomes.
Get your proven road map to a successful Pre Pack
Check out our unrivalled, end to end, Pre Pack Service
Timescales are crucial, our dedicated team are equipped to fast track the process
Your company has to be insolvent, however trading whilst insolvent for any extended period of time can make you personally liable for your company’s debts, so timescales are crucial.
Our free consultations allow us to assess the viability of your proposed Pre Pack
You’ll find our consultations friendly and supportive but focused, frank, and to the point, they’ve got to be, and we’ll let you know exactly were you stand.
You’ll need a strategic business plan with full financial projections
We’ll assess your strategic plan and financial projections (Profit & Loss, Cash Flow and Balance Sheet), or will help you create them if you haven’t already done so.
Financial funding
We can help assess the funding you may need for the purchase of the old company and the working capital requirements of the new company, and even negotiate a staged payment if required.
Completion of the Statutory Statement of Affairs
We’ll help you complete the Statement of Affairs, which is a statutory requirement as part of the Pre Pack process for the old company.
We’ll introduce you to a known and trusted insolvency practitioner
An experienced insolvency practitioner with the right approach is a vitally important part of the process. We’ll introduce you to one of the select group of insolvency practitioners we deal with on a regular basis.
Negotiating the best price to purchase the company or it’s assets
This is obviously one of the most important parts of the process. We’ll help you avoid the mistakes many Directors make and show you how to negotiate and buy at the best possible price.
Guiding you through the process of the liquidation of the old company
Often overlooked by Directors, but it’s important to ensure there are no surprises with the liquidation of the old company and it can be formally closed without issue.
Business restart services to help boost the progress of the new company
You may want to make use of our dedicated sales generation services such as website creation and hosting, multi channel digital marketing services, including automated customer communication systems, all proven to boost sales and get the new business off to a strong start.
It all starts with a conversation. Find out the value of having an experienced advisor in your corner from the outset and solely looking after your interests rather than those of your company’s creditors.
Are you unsure if a Pre Pack is right for you?
Let's find out
Our free consultations are designed to assess the overall viability of the plans you have for your business
Are you a small business with less than 10 employees and assets worth less than £100,000?
If so the Pre Pack process is easier, quicker and cheaper. Speak with our dedicated small business team and get the facts.
A Pre Pack can be the difference between saving your company and losing it all to liquidation
If your core business is viable, then a properly constructed Pre Pack gives you the opportunity to start again with a clean slate
You can also choose to only buy the key assets you want
It’s all about optimising the options available to you
There’s a range of options available to Directors and our experienced team will help you assess and choose the best options for you and your company.
You can buy selected assets as part of the Pre Pack
Select only the assets you want and need as part of your Pre Pack offer and free up funds for other requirements of the business.
You can liquidate your company and buy back selected assets
Depending on your circumstances, and particularly for small businesses, you may find it a better option to liquidate your company and buy back the assets you need most.
Find out how our dedicated team make Pre Packs happen and at the best possible price. Book your call and have the conversation you’ll be glad you had.
What if a Pre Pack isn't suitable?
If your business is insolvent and can’t be restructured then you have to consider company liquidation. The formal legal process to close an insolvent company, is a Creditors Voluntary Liquidation
Liquidation: the key points Directors really need to know
Trading whilst insolvent is a dangerous situation
Trading whilst insolvent can easily happen without you realising, or it sets in from a decision to ‘trade out’ of your cash flow problems, which turns out to be unsuccessful.
Continuing to trade whilst your company is insolvent can make you personally liable for some or all of your company’s debts.
Why you should avoid compulsory liquidation
It may seem like an easy option to allow the company to be closed down, but compulsory liquidation action from a disgruntled creditor or HMRC is always better avoided.
You’ll be subjected to increased scrutiny, with a view to recovering whatever monies they can from you for the benefit of the creditors involved.
Liquidation is how you close a company with debt
If a company has outstanding debt then you can’t simply strike it off at Companies House, there’s a statutory process to be followed, which is liquidation.
During insolvency and liquidation, Directors take on new legal responsibilities which must be adhered to, and a liquidator is appointed to administer the liquidation process.
You need to protect yourself before appointing a liquidator
You need a clear plan of action and a personal strategy to see you safely through the insolvency/liquidation process.
Many Directors have suffered financially through not being prepared in advance.
Once the liquidator is appointed you lose all control of the company.
The liquidators role in the liquidation process and their two main objectives
The liquidator is responsible for administering the formal liquidation process and they have two main objectives:
To collect as much money as possible for the company’s creditors and to conduct a formal investigation into the conduct and financial dealings of the company’s Directors.
Issues that typically create personal liability for Company Directors
Insolvency and liquidation removes the protection of limited liability and Directors can be held personally liable for:
- Trading whilst insolvent
- Misconduct with HMRC debt
- Overdrawn Directors Loan Account
- Preference payments
- Personal Guarantees
- Problems with Bounce Back Loans
Check out our Liquidation Service providing additional protection for Directors and focused on looking after your personal interests first and foremost
We have a simple but vital message for all Company Directors facing Insolvency or Liquidation
Be careful
Your personal funds and assets can be at risk
You need a roadmap and a clear strategy to help you navigate the process and minimise any personal liability you may face.
Find out how our consultations can save you time, money and worry.
This is the first step to a solution to the issues you face
We know how demanding and challenging this is for Directors, however our consultation will provide clear answers and solutions for both the company and you personally.
We’re friendly, but we get straight to the point
You’ll find our advisors friendly and keen to help, it’s how we do things. You’ll also find us very focused on the financial assessment of your business and providing the practical solutions you need.
No generalisations, it’s specific and tailored
This is why our consultations work so well, we discuss your specific problems and concerns and provide specific options and solutions, no generalisations, no spiel, no fluff.
The importance of a roadmap and personal survival strategy
We’ll provide a clearly defined route forward for you and the company along with a strategy to help minimise any potential personal liability you may face.
You get the chance to assess the value of what we do
Find out how we personalise our service, prioritise your personal interests, and provide the solutions that work. Assess it first-hand and decide if it’s for you.
Persistent cash flow problems need a resolution or they just get worse. Take action now and book your consultation (video call or phone call), you’ll be glad you did.
So what's so different about us?
IT’S GOT TO BE OUR ABSOLUTE FOCUS ON PROTECTING THE PERSONAL INTERESTS OF OUR CUSTOMERS
EXPERIENCE THE DIFFERENCE FROM YOUR VERY FIRST CALL
We specialise in the options available to Directors facing company insolvency
Here’s what we do:
Recovery and Restructure
- If your company is viable and you want to take it forward, we have the expertise to help you achieve your goals.
- You’ll find our discussions supportive but frank and to the point, as we assess the viability of your business and the options available to you.
- Our strategic review will assess the practicalities of changing the current financial, operational, and if required, legal structure of your business to improve profitability, and cash flow.
- We provide these services to suit your preferences, as a one off project, or an ongoing consultancy service or through a Non-exec Director appointment.
Pre Pack Administration
- We put Directors in the driving seat by enabling a Pre Pack buy back of your insolvent company (or individual assets) without the existing debt burden.
- We’ll assess your strategic plan, financial projections and funding requirements and can assist with these if you don’t have them in place.
- Agreeing the right purchase price is obviously one of the most important parts of the process. We’ll help you avoid the mistakes many Directors make and show you how to negotiate and buy at the best possible price.
- We’ll introduce you to an insolvency practitioner with the right experience and positive approach to Pre Packs.
Company Liquidation
- We take the time to prepare you for what’s ahead to minimise any personal liability you may face.
- We’re here to look after your personal interests first and foremost, and will see you through the liquidation process from start to finish.
- We undertake the initial consultations and essential information gathering, conduct the financial assessment of your business and help you complete the Statutory Statement of Affairs.
- We introduce you to a known and trusted insolvency practitioner to administer the completion of the liquidation process
Business Restart Services
- For Business Owners and Directors looking to start up again, we offer a range of business restart services all priced to suit your new circumstances.
- Our business restart services are designed to fast track your new operation and help boost sales. These include:
- Multi-channel Digital Marketing Services guaranteed to generate traffic
- Websites and landing pages proven to convert traffic
- Automated customer communication systems
- Web hosting and online security options
- A full suite of back office services to include payroll, accountancy services and sales ledger management
Our insolvency services provide safeguards, experienced guidance and opportunity for Directors, all tailored to your specific requirements.
Are you a small company with less than 10 employees?
Speak with our dedicated small business team and find out how the liquidation process can be easier, quicker and less expensive.
SOME OF THE REAL RISKS DIRECTORS FACE
Forced liquidation from a disgruntled creditor or HMRC is always best avoided. An HMRC appointed liquidator will have a very clear agenda and will put you under increased scrutiny and investigation with a view to recovering whatever monies they can from you for the benefit of the creditors involved.
If you continue to trade whilst insolvent or even whilst there is a reasonable expectation the company will become insolvent, then you can be held personally liable for some or all of the company’s debts.
At the point of liquidation you become personally liable for the full amount of an overdrawn Directors Loan Account. Find out how to minimise this liability in advance of the insolvency process and before you speak to an insolvency practitioner.
These can be payments that give preference to a particular creditor, a lender whose loan is personally guaranteed, or to a connected party, all of which you can be held personally liable for.
The liquidator can and will look at events prior to liquidation for items such as assets sold at less than fair value or illegal dividends. They will also look at payments for personal items, justification for which should be prepared in advance or you may be required to repay these personally.
When the liquidator is appointed, Directors immediately lose their authority and control of the company and the liquidator takes full control.
The liquidator’s main responsibility now is acting in the best interests of the company’s creditors and not yours.
This can become an area of contention leading to disagreement and ill feeling, which invariably works to the detriment of the Director.
Be prepared in advance.
A key aspect of the liquidators responsibilities is to undertake an investigation into the Director’s conduct in relation to how they have managed the company.
Find out how best to approach this and how to manage the situation for a much more positive outcome.
This is a compensation order made against a company Director, where the conduct for which a Director has been disqualified had caused loss to one or more creditors of the insolvent company.
Find out the best way to appeal one of these orders.
We are Accountants and Business Advisors with a new approach to Company Liquidation
IT PROVIDES ADDITIONAL PROTECTION FOR DIRECTORS, HELPS TO MINIMISE YOUR PERSONAL LIABILITY AND GUIDES YOU THROUGH THE ENTIRE LIQUIDATION PROCESS
The Liquidation Service focused on protecting your personal interests
An unrivalled service you won’t see anywhere else, here’s what you get:
1
First of all, you get us
Experienced, on your side, at your service, and laser focused on seeing you through the liquidation process as quickly and safely as possible.
2
We help you get your business in order
We guide you through the key aspects you must address before engaging an insolvency practitioner. This includes:
- Assessing if your company is insolvent and what it means
- The importance of how you deal with HMRC
- Avoiding compulsory liquidation
- The dangers of trading whilst insolvent
- How to address issues with Bounce Back Loans
- Minimising your liability on an overdrawn Directors Loan Account
- The do’s and don’ts of preference payments
- Identifying and addressing the issues that will impact you personally
3
The practical issues
We’ll show you the best ways of dealing with your staff, customers, creditors, HMRC and the bank. We’ll also cover the natural worries you’re likely to have on perceptions, personal concerns and what’s in front of you.
4
Your new legal duties and the challenges
Your legal duties as a Director change during Insolvency and Liquidation and your conduct as a Director will be investigated. We keep you right on how best to handle the process for a more positive outcome.
5
The insolvency practitioner
We’ll introduce you to a known and trusted insolvency practitioner who is required to administer the formal liquidation process. The insolvency practitioner’s main responsibility is to look after the interests of the company’s creditors, and ours is to look after yours.
6
Business restart
For those Directors looking to start up again in business we can help fast track the process and we provide the following services:
- The best way to buy back key assets at heavily discounted prices
- How to buy back the entire company at the very best price
- Key restart services such as website development, digital marketing services and a suite of back office services, all priced to suit your new circumstances.
It all starts with a conversation, and this is an important one you shouldn’t delay.
Book your free consultation now and assess the quality and value of our service first hand.
Are you unsure, or concerned, or having difficulty taking action?
Get the clarity and direction you need. Book your Call now.
Make use of our experience and expertise and find out what your best options are.
Find out how we build in protection for Directors and help minimise personal liability.
Ask about our proven roadmaps to guide you through the insolvency and liquidation process.
What to do next? Check out our Smarter Liquidation Service:
Protecting your personal interests first and foremost
Our primary purpose is to:
- Minimise any personal liability you may face
- See you through the insolvency process as quickly and painlessly as possible
- Facilitate you starting up in business again (if that’s what you’re looking to do)
This is where we differ from the role of the insolvency practitioner.
Their main role in the liquidation process is to protect the interests of the company’s creditors and undertake an investigation of Directors’ conduct.
Our role is to look after your best interests before, and throughout the liquidation process.
Here’s how we help Directors minimise any personal liability you may face
1
Experienced accountants at your service and on your side from day 1
We'll show you how to avoid the pitfalls and real risks of personal liability that company Directors face during the insolvency and liquidation process.
2
Early and immediate intervention to urgent situations you are facing
This includes the threat of issues such as court decrees, winding up petitions, compulsory liquidation, and the withdrawal of finance facilities.
3
We identify the risks and pitfalls that are likely to impact you personally
This includes aspects such as issues with HMRC debt, personal guarantees, and trading whilst insolvent, for which you can be held personally liable.
4
We prepare you in advance, so you are ready for what's in front of you
This would include an assessment of your Directors Loan Account and associated negotiations before the insolvency practitioner is appointed to minimise your personal liability.
5
When you're ready, we introduce you to a trusted insolvency practitioner
We have a number of trusted insolvency practitioners we deal with on a regular basis and who you may find are more understanding of your individual circumstances.
6
Guidance and assistance through the entire liquidation process
Our objective is to see you through the liquidation process safely with as little difficulty as possible, enabling you to restart in business quickly, if that's your choice.
Find out how our service is paid for without using your personal funds.
"I just want to close my business as quickly and easily as possible"
IT’S A REQUEST WE HEAR OFTEN FROM OUR CUSTOMERS, HOWEVER YOU NEED TO BE PREPARED IN ADVANCE TO MINIMISE ANY PERSONAL LIABILITY
BE AWARE THAT THE LIQUIDATORS JOB IS TO LOOK AFTER THE INTERESTS OF THE COMPANY’S CREDITORS, IT’S OUR JOB TO LOOK AFTER YOURS
Are you experiencing the signs of technical insolvency?
If so, you must take care, as insolvency changes the rules of operation and you can become personally liable for some or all of your company’s debts.
- Do you regularly miss paying HMRC on time or is your HMRC liability growing?
- Are your funding facilites (e.g. bank overdraft) always at their limits?
- Are you finding it difficult to secure additional funding?
- Are you having problems repaying your Bounce Back Loan?
- Are your suppliers always chasing for payment or are you receiving Court Demands?
- Are you having to plan ahead and chase debtors to meet the wages bill?
- Have you not been taking your full salary recently, or even any salary?
- Are cash flow problems taking up more and more of your time?
One of the tests for insolvency is the cash flow test which measures if a company can meet its liabilities as and when they fall due.
If you answer ‘YES’ to one or more of the previous questions, there’s a danger you must beware of.
Trading whilst insolvent can make you personally liable for some or all of your company’s debts.
You should take action now to find out where you stand and what your options are.
Our consultations are free and totally confidential.
Don't put it off
We get it, and we know what it’s like, but it could cost you.
It’s why we offer our free consultations – an experienced and professional sounding board to help you formulate your options, solutions, and timescales.
Choose what best describes your circumstances
“We’re not insolvent but we need help”
Speak to one of our company recovery and restructuring experts now to assess your business circumstances and options.
“We may be insolvent and need advice”
Take action now to find out where you stand, ensure you follow due process and understand how to best protect your personal interests.
“We’re insolvent and want to close quickly”
We know that some Directors are ready to liquidate and want to move quickly, so we’ve created a Fast Track Online Insolvency Process.
Here’s the expertise that’s available to you when you contact us
Experienced Accountants
Our accountants have extensive industry and commerce experience, business analysis expertise and fully understand the personal implications of the insolvency process.
Company Recovery Experts
Experienced company recovery experts who will appraise the viability of your business and if assessed to be sound, will assist in the planning of the financial and operational restructuring required.
Specialist HMRC Debt Negotiators
Experienced advisors regarding all aspects of HMRC debt, who understand how the negotiation process works, and who can engage and negotiate with HMRC on your behalf.
Licensed Insolvency Practitioners
Avoid the risks of compulsory liquidation (from a disgruntled creditor, your bank or HMRC) and appoint an insolvency practitioner who may better understand your specific circumstances.
This is an important conversation, which is always better to be had sooner than later.
Closing or dissolving your limited company with outstanding debts
The three liquidation options
Liquidation is the formal process for closing down a limited company with debts and it’s important to understand that it is designed to protect the interests of creditors, not Directors.
There are three basic liquidation options depending on whether your company is insolvent or not.
- Compulsory Liquidation (normally initiated by a disgruntled creditor, HMRC or your bank to force the closure of an insolvent business). This is normally best avoided as it means you will come under greater scrutiny and more robust investigation.
- Creditors Voluntary Liquidation, which despite its name is a process initiated by company Directors to formally close an insolvent business.
- Members Voluntary Liquidation, applies only to solvent businesses and can be a tax efficient way for company owners to extract funds from a business and have it formally closed.
Can it be dissolved at Companies House?
It’s a question we are often asked by Directors looking to close their company: Can I dissolve my company or have it struck off at companies house when it has outstanding debts.
Companies House have very strict rules on the criteria for dissolving or striking off a limited company. The company must be solvent, debt free, and there’s a well defined process to be followed:
- You must announce your plans to all creditors, other interested parties (such as staff, shareholders and pension fund trustees), as well as HMRC
- You must make sure your employees are treated according to the rules and paid their full redundancy pay and final salaries
- You must deal appropriately with your business assets and accounts
Creditors will normally object to a dissolution or strike off notification and HMRC do so routinely.
You must follow due process
Closing a limited company with debts to HMRC or indeed debts to any other third party requires a formal liquidation process unless all the outstanding debts can be paid off in advance.
Directors should be aware that The Insolvency Service has been granted new powers to tackle unfit directors who dissolve companies to avoid paying company liabilities.
In addition to this, HMRC will often pursue a dissolved company if they feel they have tried to evade responsibility, at any point up to 20 years after the event.
Penalties for not following due process include:
- Disqualification as a director for a period up to 15 years
- Personal liability for company debts
- Potentially unlimited financial penalties
- A custodial sentence of up to seven years
You may be due Directors Redundancy Pay
DIRECTORS MUST MEET CERTAIN CRITERIA TO QUALIFY FOR REDUNDANCY PAYMENTS. WE HELP YOU CLAIM THIS FOR FREE, ALL PART OF OUR SERVICE. GET THE FACTS HERE
speak to us first and before you speak to an insolvency practitioner
Our approach is different to the insolvency practitioner, our primary objective is to protect your personal interests.
Directors should be aware that insolvency practitioners have very specific responsibilities during the liquidation process
- One of their main responsibilities is the protection of creditors and their rights. They work on behalf of creditors and not the company’s Directors.
- They will undertake a formal investigation of your conduct as a Director to determine if your actions contributed to the company’s failure or adversely affected creditors interests.
We’re here to help you navigate through the process as safely and quickly as possible
Discuss your circumstances with experienced accountants and specialist corporate advisors in confidence and for free.
We prepare you in advance for the liquidation process, what to expect, and how to minimise any potential liability you may face.
We can refer you to a known insolvency practitioner who you may find is more understanding of your particular circumstances.
The 12 crucial facts every Director must know about company liquidation
Get the facts, be aware of the risks and take the right advice to help you make the right decisions.