Case Studies

Up against the clock

An insolvency practitioner handling a pre-appointment case in the Midlands was up against the clock. The primary challenge for the IP was to find a buyer/investor before the business was pushed into administration because a bank with a substantial loan outstanding could pull the plug at any moment and would then set its own agenda.

Through the IP was able to cast the net widely and test the market quickly, receiving a significant number of expressions of interest from serious potential buyers within 24 hours. These expressions of interest also helped to validate further expressions of interest from interested parties introduced by the existing management.

A perfect fit has a broad spectrum of potential buyers, each with their own niche interests.

Andrew McTear, Partner with McTear Williams & Wood was handling what appeared to be a straightforward pre-pack that would end up with a director of the business. As a small, specialist supplier of prescription medicines and health products for animals, any owner would have to be licensed and it seemed unlikely that any third party purchaser would be interested.

“I posted the business on more in hope than anticipation, reckoning it was unlikely to achieve a match in a very short time scale, Andrew recalls. “I received one expression from a professional adviser in the North of England who, it transpired, represented a client within the sector who held all the relevant licences. It was the perfect fit.

“The offer was negotiated up to 250% higher than the director’s final bid and so I made the sale to the third party, realising significantly more value for the creditors. A very successful outcome.”

When time is of the essence

A regional insolvency practitioner was keen to market an engineering consulting group as quickly and as widely as possible as it was still trading and there was a strong possibility that key customers could dissipate and key staff could be lost as soon as the prospect of administration became a reality.

The business was of sufficient size and geographical spread to warrant an ad in the Financial Times, however the next slot that could be scheduled in the FT was a few days away. The business was posted with on a Friday and had received a dozen expressions of interest by the time the ad appeared in the paper on the following Tuesday.

When speed is essential, can provide the instant solution, generating interest usually within hours. And when discretion is required, the identities of both the business and the IP can be assured.