Pre-Pack Administration

By selling your business and assets through Pre-Pack Administration, you can ensure business continuity, save jobs and deliver the best return for creditors.

How We Can Help

✓ Relieve the pressure of business debts by exploring company rescue solutions

✓ Learn how Pre-Pack Administration could resolve your financial difficulties

✓ Get free, fast advice tailored to your specific circumstances

✓ Discuss your options and decide which approach will be best for your business

Financial problems can strike a business at any time. If you act quickly, there may be several options available that will allow you to recover your business – whether by negotiating better payment terms with your creditors, implementing strategies to improve cash flow, or seeking new investment. On the other hand, if debt problems have escalated, or if these options are not viable in your circumstances, a Pre-Pack Administration may be the best way forward for your business.

Take the first step towards a brighter future by exploring our expert guidance and tailored strategies today. You can call us on 0800 999 0666 or fill out our online enquiry form

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In Pre-Pack Administration, the sale of a business and its assets is agreed upon before the company is put into Administration. The sale is completed as soon as an Administration Order has been made and Administrators have been appointed, and the money from the sale is distributed among creditors to pay off the business’ debts.

There are a number of key advantages to this approach. It is called “Pre-Pack” Administration, because the business and its assets are sold together as a package, and because arrangements for the sale are made in advance, the business can continue to operate under its new ownership the moment it goes into Administration and the sale is completed. This often saves jobs, satisfies creditors and avoids the risk of negative publicity that is sometimes associated with Administration.

Advantages for creditors are that Pre-Pack Administrations can prevent losses, guarantee the sale of the business and ensure they receive the money they are owed. Under other types of Administration, the business typically ceases to trade while the appointed Administrator searches for a buyer, but with Pre-Pack Administration, the risks associated with this process are generally avoided.

If your business is struggling to manage debts or has reached a point where you will be unable to pay the money you owe, it is vital to seek expert advice as soon as possible. At Company Insolvency Advice, we have many years of combined experience in supporting organisations to recover from financial difficulties, and we can guide you towards solutions that will work for your business. We can advise you on whether Pre-Pack Administration will be a suitable option to resolve your debts, and manage the process on your behalf to reduce the stress you may otherwise feel.

Contact us today to learn more – the sooner you act, the more options you will have and the better the outcomes for your business will be. Call us today on 0800 999 0666, or use our online enquiry form to arrange a call back.


If, after discussing your circumstances with financial experts, you determine that Pre Pack Administration is the right course of action for your business, you must appoint someone to manage the sale for you. By discussing your challenges with our team, we can identify whether Pre-Pack Administration will be suitable and, if so, take on this responsibility for you. This will help to reduce your stress and reassure you that your business will continue after its financial difficulties are resolved. In fact, an Administrator is obliged to ensure that any potential buyers are viable before agreeing to the sale.

When you agree to proceed with Pre-Pack Administration, the appointed Practitioner will arrange for a valuation of the company and its assets. This will help to determine a realistic asking price for the business, and ensure the best possible return for creditors. From there, the Practitioner will look for a buyer and arrange the sale. Potential buyers might include other businesses, or the company’s existing directors, who are permitted to purchase the business under a new company.

After the sale is agreed, you will apply to the court to legally appoint the Practitioner as an Administrator. Once the court accepts this appointment, the sale will be completed and the business will move to the new company.

Pre-Pack Administration can take between 7 and 28 days, or longer in some cases – there is no set timescale within which the sale must be completed. However, factors like pressure from creditors or cash flow challenges may demand that the process be conducted more urgently. Thanks to our experience, we are aware of many of the most common pitfalls and problems that can arise and cause delays, so we can help to avoid these and ensure the Administration process runs smoothly.


While we would never advise Pre-Pack Administration as a first step when dealing with business debts, it may be the best option in circumstances where other company rescue approaches do not apply or where the situation has escalated to formal insolvency proceedings. In some cases, it may be the only way to keep your business moving forward.As we explained above, there are several key advantages to this solution that can make it a more attractive prospect than other forms of Administration:

  • Resolves corporate debts.
  • Safeguards against legal action by creditors.
  • Enables your business to continue under a new company.
  • Prevents job losses.
  • Keeps customers and contracts in place.
  • Appears as a seamless transition from the outside.
  • Delivers the highest possible return for creditors.

There are also clear advantages for buyers. By purchasing a package, the buyer receives the business and its assets, including existing customers, contracts, and employees. In this way, the business is in a strong position to continue and prosper under the guidance of the new company.For a free, confidential discussion about your circumstances and advice on whether or not Pre-Pack Administration is the right solution to resolve corporate financial troubles, contact our experts today.


If your business is facing mounting debts, pressure from creditors or legal threats, speaking to an expert is the best pathway to a solution. Our team has worked with businesses of all sizes throughout the UK, and we know which options are the most viable to address specific financial issues. If there are alternatives to Administration that could help your business, we will explain these and discuss potential outcomes, so that you can be sure to consider every option before making a decision.

With our guidance and insight, you can be sure to choose the right way forward and will have the best possible chance to rescue your business. Contact us on 0800 999 0666, or use our online enquiry form to arrange a call back at your convenience.


A pre-pack sale of a business can unfold in a number of different ways, because selling an existing company is almost never straightforward. However, the main tenets of the pre-pack process are usually the same, as we will outline below. 

During the pre-administration phase, the distressed company’s assets are accurately valued by professionals. Working with a licensed insolvency practitioner at this stage can make the process easier. Efforts may be made to market the assets to potential buyers at this stage, although the level of marketing can vary. This can be a way to avoid the need to pursue a pre-pack deal, as selling the assets could raise the money the company needs to continue. If this is unsuccessful, the administration can proceed.

Terms are agreed upon with a “pre-pack” buyer. This can be an external third-party, or in some cases, the company’s existing directors or owners may form a new company to purchase the business and its assets. If you are working with an insolvency practitioner, they can value the company’s assets, negotiate on your behalf and arrange this sale. The relevant assets may include physical items like tools and equipment, contracts, or pieces of intellectual property.

From there, the process is usually as follows:

  • Administrator’s appointment: Once the company is ready to enter administration, administrators are formally appointed to take control of the company and arrange the sale. This may involve a creditors meeting in which the company’s creditors can approve the proposal to put the insolvent company into administration.
  • Execution: Almost immediately following their appointment, the administrators complete the sale of the assets to the pre-pack buyer. 
  • Employee transfer: If applicable, employees may be transferred to the new company under the Transfer of Undertakings (Protection of Employment) Regulations, commonly known as TUPE. This will usually be one of the terms of the sale.
  • Creditors: The administrators are responsible for distributing the proceeds of the sale to creditors, based on the statutory order of priority. This means that secured creditors will be paid first, followed by unsecured creditors, and then other parties.
  • Report: The administrators must prepare a detailed report explaining the reasons for choosing a pre-pack sale, how the business was valued, and how the process achieved the best outcome for creditors.
  • Dissolution or residual actions: After all distributions are made, the administrators will either dissolve the old company or convert the administration to another insolvency procedure if there are remaining assets or matters to attend to.

Speak to the team at Company Insolvency Advice to learn more about whether a pre-pack administration is the right approach to rescue your business.

Get in touch

If you need support to make a pre-pack sale of your business, or would like advice on the company rescue solutions that might be available based on your circumstances, contact the experienced team at Company Insolvency Advice today.

Call us now on 0800 999 0666, or use our online enquiry form to request a call back.



A specialist construction, safety, and maintenance operator contacted us about financial problems that had arisen after a build-up of unpaid tax liabilities, caused by historic bad debts.

Despite obtaining several high-value contracts, the company was unable to come to an arrangement with HMRC to satisfy the outstanding liabilities. As a result, HMRC instigated a Control Of Goods Agreement over the company’s machinery, which meant it could not continue to operate or fulfil its contracts.

The company considered going into Liquidation, but its main customer said that this would represent a breach of contract and that it would not pay its debts as a result. In this case, we recommended Pre-Pack Administration as a solution that would benefit all parties.

This meant that the business’ main contract would be transferred to a new company, which protected the terms of the contract and the outstanding debt owed by the customer. It also enabled the company’s 17 employees to retain their jobs under the new owner.

The Pre-Pack Administration was approved and the business went on to flourish with the new company, keeping up-to-date with all outstanding creditor payments.


Company Insolvency Advice

Company Insolvency Advice is a leading business rescue, corporate restructuring and insolvency specialists, with years of experience in providing corporate debt solutions. We understand the daily pressure you are under as a director and our team of expert consultants cover the whole of the country in order to discuss debt solutions with company directors.


We cover the whole of the UK

From our office in the North West of England, we provide a national advice service to the whole of England, Scotland and Wales. We aim to offer tailored, high quality service of local business advisors, with the experience, knowledge and support of a huge, national organisation.


Why clients choose us

  • Communication

Good communication holds the key to any financial advice for businesses and our remit is to provide clear and accurate debt advice.

  • Experience

Our staff have many years’ experience in dealing with ever-expanding creditor pressure and economic issues that affect companies.

  • Reputation

Company Insolvency Advice prides itself on the reputation it has built up over the years in assisting company directors resolve various financial issues.

“Extremely helpful and very professional service. Knowledgeable and very approachable. Would highly recommend!!”


A Company Voluntary Arrangement (CVA) is an agreement between a business and its creditors that establishes payment terms for corporate debts. The two parties will negotiate and set a fixed period over which the company will pay all or part of the debt. CVAs are often an effective way to resolve debt problems, because the creditor receives the money they are owed and the business has more time to work through its financial difficulties. 

A CVA can also remove the stress of business debts. If you cannot pay and you are under pressure from creditors, accruing interest or facing late payment fees, this can be an extremely stressful situation with no clear path to recovery. If your organisation has the potential to recover, a Company Voluntary Arrangement can remove these sources of stress and help you to focus returning your business to viability.

It is important to act quickly when you notice a problem with mounting debts, as this may give you more solutions to consider and can help you to avoid the more serious consequences of failing to pay creditors. As soon as you notice a problem, contact us to discuss your options and develop a plan to rescue your business.

The team at Company Insolvency Advice has many years of experience supporting businesses to resolve corporate debt problems, and we have first-hand knowledge of the company rescue mechanisms that can revitalise businesses. We can discuss your financial situation in detail, offer practical advice on the available solutions, and help you to determine whether a CVA is the right path towards recovery for your organisation. Call us now on 0800 999 0666, or use our online enquiry form to request a call back.

Get in touch today

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