Administration offers immediate protection from creditors allowing the business time to formulate and implement a strategy for its sale or recovery. By preventing creditors taking action that may be detrimental to the business and its goodwill, ultimately this should result in a better return to creditors than from a less orderly wind down/ cessation of trade.
Its primary focus is rescue of the business.
Sometimes a pre-arranged sale may be completed immediately upon the appointment of an administrator with little or no external marketing. When used appropriately this can result in a better return to creditors due to the continuity of the business.
Whilst a straightforward process an administration of any kind requires careful planning and a comprehensive strategy to ensure the best result is achieved in the often very short timescales required.
Contact us now to decide whether an Administration may be appropriate for your business.