Types of sales
The primary types of insolvency sales are:
Asset only sale – the purchaser simply buys certain assets of the business;
Going concern sale – the purchaser takes on the business with a view to turning it around and keeping it trading; and
Pre-packaged sales (the ‘pre-pack’) – this is really a type of going concern sale where the sale is lined up prior to the business entering into the insolvency process. This type of sale is normally limited to parties that are heavily involved in the business, i.e. existing owners or managers.
These are considered in the next sections.
