Buying an insolvent business

Everyone loves a bargain – accordingly, there is a lot of interest when liquidators and other insolvency practitioners put a business up for sale.  Purchasers jostle like shoppers in the Myer stocktake sale, trying to position themselves as the perfect purchaser.  At the same time they try to convey their concern about the value of the business or assets – everyone expects a discount for a distressed business.

Purchasers are often disappointed.  The typical process run by an insolvency practitioner is very transparent and methodical, however, there are a few techniques and strategies that can be helpful.

The insolvency practitioner has a duty to get the best price and terms, and importantly, may be called upon to prove they have done so.  Therefore prospective purchasers should expect a transparent process that will probably involve advertising, and dealings with anyone that expresses interest.  This can be frustrating for purchasers that see themselves as the