How can Pre – Pack Administration benefit my company?
A Pre-pack administration sale is a method of selling your viable business to a third-party – off the market.
PPA has a number of advantages:
- It provides continuity for the business which is great for your staff and your customers
- It ensures immediate protection from your creditors
- It guarantees a better return to creditors than liquidation as there’s more value in a functioning business than one with frozen assets
- As the sale is pre-agreed to the administrator, you’ll know the costs and the outcomes
- The process is completed relatively quickly
- It limits potentially damaging publicity
- It reduces the significant Company Administration costs
- It is also a way for existing directors to purchase the business and continue trading under a new name
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One issue to be mindful of is that a ‘pre-pack’ is not permitted once a winding-up petition is issued.
As insolvency practitioners we can provide expert guidance throughout the process and offer expert advice on the options available to you.