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Pre-Pack Administration

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Pre-pack administration is a process where the “deal” to sell a business entering administration is agreed prior to the administration taking place (i.e. it is “pre-packaged.”)

Pre-packs often involve the sale of a business back to the existing management through a new company, and this will allow a seamless transition between one business and the next.  However, the sale is not always to the existing management – it can also be to a third party.

Utilising a pre-pack deal can be very useful when there are immediate threats to the business from creditors such as landlords, HMRC and banks.

The process involves the proposed administrator obtaining at least one valuation of the business, which he/she will then use to assess any offers received.  He or she will then ensure he/she complies with the required practice guideline of SIP 16 before agreeing to sell the business and consenting to act as the administrator.  Both the purchaser and the seller will then need to appoint solicitors to guide them through the sales contract and appointment formalities.

The administrator’s role remains unchanged and he / she must act in the best interests of the creditors. Visit this page for further information – Administration

To discuss a potential pre-pack administration please call Phil or speak with another member of our team on 0333 014 3454.

Alternatively, visit one of our local offices or email us:


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