Buying a Business from an Insolvency Practitioner

Lots of businesses are appearing for sale from insolvency practitioners. Insolvency practitioners can sell the business and assets of an insolvent company in a number of ways:

Contract. Sale by contract is the most usual method of sale/ purchase. If a period of exclusivity can be agreed then the buyer can focus and work towards a purchase.

Auction. This is the least preferable method of sale for a seller as it is likely to realise the least value of an asset.

Tender. This is much liked by insolvency practitioners as there is little competition between buyers and therefore each person puts in what they feel the business or assets are worth and this is likely to be higher that what can be achieved relatively quickly at an auction.

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