Speed & Efficiency
One of the significant advantages of Pre-pack administration is the speed at which it can be executed. As the negotiations are conducted in advance, the sale can be finalised quickly once the company enters administration. This rapid process minimises disruption to the business, allowing it to continue operations almost seamlessly.
Value Preservation
By selling the assets at a negotiated price, Pre-pack administration aims to preserve the value of the company. Unlike traditional administrations, where assets may be sold through open-market sales, Pre-Pack Administration ensures that the company’s assets are sold collectively at fair market value, maximising returns for creditors and stakeholders.
Business Continuity
Pre-pack administration allows for business continuity, providing a lifeline to companies facing financial difficulties. As the business is sold as a going concern, it can continue to trade under the new ownership, safeguarding jobs and maintaining relationships with suppliers and customers.
Flexibility & Control
Directors have more control over the process in Pre-pack administration. They can work closely with insolvency practitioners to negotiate the terms of the sale and identify potential buyers. This level of involvement enables directors to make decisions that align with the best interests of the business moving forward.