Buying a liquidated business

  • Thread starter hunkydory12
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hunkydory12

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Hi all. First time poster. Apologies if this has been asked in the past, I haven't been able to find a post specific enough to my query.

I have my eye on a business that is to be liquidated. The liquidator is to be formally appointed next week. I have emailed and left a message with the liquidator to inform him of my interest in acquiring one of the businesses that will become available.

Can the liquidator deal with my interest before he is formally appointed? I am relatively inexperienced in dealing with this type of situation and am unsure of how to approach this. I would obviously like to see the accounts before I give him a potential offer. Would it be acceptable to ask for these now? I am wary of other potential suitors who may be interested.

Please advise. Many thanks.
 
hunkydory12 said:
Can the liquidator deal with my interest before he is formally appointed? I am wary of other potential suitors who may be interested. Please advise. Many thanks.
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No a liquidator cannot act until he is formally appointed. Because of your last sentence, place all your initial inquiries in writing and via registered post as we wouldn't want other suitors to get beneficial treatment, if you know what I mean.
 
Thanks for your help. Once liquidator is formally appointed and I posted my registered letter, I should be able to access accounts? I presume liquidators always favour quick easy transactions.

How do they go about accepting offers? Is there a minimum price they will need to obtain?
 
In the same manner you now what is going to happen, there must be others sniffing around. The liquidators must work in the best interest of the creditors and not withhold back any information.

\you will probably be best appointing your own accountants to inspect the figures and to submit figures on your behalf.

Depending on the business, its stock levels and order books, all play a variance on the price. The current economic climate has a major role in all factors.
 
The liquidator has to get the best price and will usually advertise, the fact that you have already expressed an interest will make the liquidator realise that there is a market out there and will look to test it.

The liquidator will not simply accept the first offer that comes to the table unless he honestly believes that it is a great deal and fears that if you wihdrew your offer he would be at a loss.

If you are desperate to contact the liquidator ring him as soon as he is appointed and talk to him but follow up with a registered letter.

They accept the best offer that is available at the time.
 
Is there a minimum amount that the liquidator will hope to realise to cover any outstanding liabilities. I have a rough idea of what I think i'd like to offer but don't want to delay length of any potential transaction by bidding too low..
 
hunkydory12 said:
Is there a minimum amount that the liquidator will hope to realise to cover any outstanding liabilities. I have a rough idea of what I think i'd like to offer but don't want to delay length of any potential transaction by bidding too low..
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Just put your best foot forward so and see where that gets you.

The liquidator will seldom manage to sell the assets and be in a position to cover all outstanding liabilities.

The "company" will go to the person who offers the highest price and who can close the deal quickly.

If there is interest in the "company" you can expect a tender process of some description to take place.
 
Excuse my ignorance, but could someone please explain to me the difference between a receiver and a liquidator?
 
Liquidator is appointed when the business has no prospects for survival and has stopped trading.
Receiver is appointed when the business has prospects for survival. However, businesses that have been in receivership may ultimately end up being liquidated.
 
hunkydory12 said:
Excuse my ignorance, but could someone please explain to me the difference between a receiver and a liquidator?
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A liquidator is someone appointed to wind up the company and to discharge the creditors in a particular priority as set out in the companies acts.


A receiver, is somone who is acting on behalf of someone who holds a debenture over the company. The receivers duty is not to wind the company down but to discharge the debenture. However, sometimes by the time the receiver has finished his/her job there is nothing left in the company to allow it to continue trading. mote detailed info on receivership here.

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I am finally at the stage where I hope to seal a deal with the liquidator after a prolonged delay. I hope to have a 'silent partner' for this venture. Are there any vital things to consider when entering into such an arrangement?
 
hunkydory12 said:
I am finally at the stage where I hope to seal a deal with the liquidator after a prolonged delay. I hope to have a 'silent partner' for this venture. Are there any vital things to consider when entering into such an arrangement?
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Seek professional advice rather than soliciting anonymous advice from posters who don't know all the facts of the case?
 
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