What does 'pre-packaged administration' mean for a business?
Our last post looked briefly at the CVA where, if successfully implemented, a company can continue. Administration is also an opportunity to reshape and restart a business in a healthier form. It usually means the end of the corporate ‘shell’, but the business will often survive.
An administrator will generally try to sell a business as a going concern to maximise value. Following a discreet marketing process, a sale is agreed by the intended administrators in advance of their appointment, leading to a “pre-packaged administration”.