Acquisition of distressed businesses
When an administrator is appointed to a company, he or she is obligated to realise as much cash as possible for the assets available.
Due to the very fact that the company is in administration, those assets are usually sold at a substantial discount to normal valuations, offering a good opportunity for buyers, albeit usually with no warranties or guarantees. However the acquirer will need to move very quickly, and whilst there is not time to undertake all the rigorous checks applied to a normal transaction, there is still a minimum which should be undertaken. It is also important that the buyer can devote time immediately after the acquisition, otherwise the business can easily hit the same problems that put it in a distressed position.
We are made aware of a large number of distressed business for sale. Please contact us for further details.
