Sale of business out of administration
A business that had a number of service and maintenance contracts, had for a number of reasons, seen a decline in its turnover and profitability and was facing severe financial difficulty. Ensors were approached to advise and assist, after careful consideration the directors were faced with no other option than to unfortunately consider insolvency options.
The easiest option would have been to put the business into liquidation. However, it was recognised that there was the possibility of achieving a sale of the business, with the ongoing service and maintenance contracts acting as a potentially valuable asset. It was vital that in order to protect the value in the contracts and the existing book debt ledger, a sale was concluded quickly and continuity of service was maintained.
A pre-packaged sale of the business in conjunction with an Administration appointment was identified as the best option. Ensors undertook a marketing process and working with various teams within the firm resulted in a number of potential purchasers being identified. A sale to a third party purchaser not connected to the previous management was secured. This resulted in 22 jobs being secured, existing customers being serviced and a better overall outcome for creditors than liquidation.
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