Lucas Ross offer tailored support and guidance to business owners with access to a specialised team of advisors who are looking to sell within an accelerated sale process.
We have a proven track record which provides a smooth and effective exit for those looking to affect a business sale on the open market, a MBO (Management Buyout), a MBI (Management Buy-In), or simply passing it to your family.
We fully understand the emotional challenges attached to a business sale and are well equipped to negotiate and manage the whole process, specialising in sourcing off-market opportunities for UK and international SME disposals and acquisitions – allowing you to continue running your business in parallel to their rigorous endeavours.
Areas we support:
Buying a company out of insolvency or Buying a Distressed Company
The interest in acquiring insolvent companies can lie at the centre of a restructuring and a going concern statutory framework which can significantly reduce any possible damage to the company’s image as well satisfying creditor claims at a higher rate.
Acquisitions of insolvent companies involve a range of special aspects which have to be centrally managed but can be a quick and cost-effective solution for many stakeholders, especially customers and employees.
Lucas Ross have extensive knowledge and specialist advisors who fully understand the special provisions of insolvency law to reconcile the different interested parties involved.
Buying a company out of insolvency involves greater time pressure (2-8 weeks) than normal M&A transactions (9-12 months). Usually, ‘restructuring by transfer’ [i.e. where the buyer pays for all or some of the assets of the company] is carried out in the form of an asset deal. As a result, the assets required for the company’s operation are transferred to the buyer’s company (“NewCo”) usually at a knock-down price and without the buyer being liable for any liabilities of the insolvent company.
Insolvency law provisions applied to the restructuring process allow easy adjustments in the staff structure or early termination of unfavourable contractual obligations (e.g. expensive lease contracts).
If the investors join and finance the insolvency plan, they can take over up to 100% of shares in the debtor company being restructured. As opposed to the asset deal, the legal entity continues to exist in this case.
Buying a company out of insolvency can thus offer buyers major opportunities and advantages if they successfully reduce complexity of the acquisition process and are able to anticipate possible risks.