Administration List

Businesses In Administration

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A company is placed in administration when it becomes insolvent, either due to mounting debts that can’t be paid or an excess of liabilities that outstrips the total value of the company’s assets.

Appoint administrators does not necessarily signal the end for the company in question. The main aim is to review the situation and decide on the best route forward for the company in question, whether this is a restructuring, the sale of the business as a going concern, asset disposal or a full liquidation.

If successful, an administration could be the missing piece that a business needs to move past its debts and start a bright new future. However, if a route back to profit cannot be found, liquidation tends to be the next step.

Administration doesn’t always offer the best returns to creditors, but unlike liquidation, it does ensure that there is some potential for future profit. For the company itself, it offers something of a second chance; while some jobs are likely to be lost in the restructuring process, job losses are certainly not as extensive as they would be if the business closed completely.

To make a turnaround work, administrators are on the lookout for well established businesses and experienced directors to take a struggling company and push it towards a new profitable direction, either as a standalone enterprise or as part of a bolt-on to an existing company.

For the buyer, this presents the opportunity to buy a company ‘intact’ at well below previous market value estimations. In the past innovative business buyers who have found distressed business opportunities at the right time have capitalised on these opportunities, purchasing companies at a nominal sale price as low as £1 due to the distressed nature of the company in question. Such an acquisition can be an excellent route to expansion with the opportunity to get hold of entirely new teams, equipment and operations at vastly reduced costs.

How can I profit from a company administration?

To have the opportunity to buy a business out of administration and capitalise on all that it represents, you need to be quick off the mark.

Our subscribers are among the first to hear of UK businesses entering administration and our service ensures that they have access to all the information needed to get the ball rolling, including the company information, financial figures and the all-important contact details for the administrators handling the case.

If you are looking to buy a business out of administration, join Administration List today with subscriptions from just £9.95 and give yourself the competitive advantage you need!

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