What is a pre-pack administration?

How a pre-packaged administration sale works and the issues prospective buyers should understand.

A pre-pack administration is a sale arranged before administrators are appointed and completed shortly after their appointment. It can preserve trading value, jobs and continuity where delay would damage the business, but it is subject to specific professional and regulatory scrutiny, particularly when connected parties are involved. Prospective buyers should obtain specialist advice and should not assume that every administration has involved, or will involve, a pre-pack sale.