What is a “Pre Pack”?
A “Pre Pack” sometimes called accelerated M & A process is a procedure under which an insolvent business can be rescued as a going concern through an administration process whereby a pre-arranged sale of all or some of the assets to a new company set up by the former management or directors (connected parties) is deemed to be the best available solution for creditors.
The Administrator manages the sale process, and ensures the best possible value is achieved for the business and assets. The sale completes upon or shortly after the appointment of the Administrator to ensure minimal disruption to customers and often results in an enhanced return to creditors via a sale of assets such as goodwill.
The assets are bought at market value as determined by an independent professional valuer instructed by the Administrator but the terms of the sale / deal are negotiated and agreed in principle by all parties including the proposed Administrator before the appointment.
How does the Process Work?
Consultation: reach out to our team to discuss your requirements and the details of the proposed transaction
Evaluation: Our evaluator team conducts a thorough review of the proposed transaction based on the relevant criteria and parameters
Report Generation: we prepare a comprehensive independent written report detailing our findings and recommendations
Delivery: The finalised report is delivered promptly to facilitate the required approvals or filings within the stipulated timeframe