SALE OF ASSETS, CONTRACTS AND GOODWILL OF A LONDON BASED SECURITY COMPANY FOR £210,000
Williams & Partners Ltd was engaged by the retiring Director of this loss-making London based security company to market and sell the assets, contracts and goodwill on a pre-pack administration basis. Due to other similar businesses we had sold, we contacted our database of companies who had previously expressed an interest in this area as well as placing an adverts on two leading online websites for distressed businesses. Over a period of 3 days, 12 non-disclosure agreements were sent out (with a further 9 over the following 10 days).
On the basis of the prepared detailed Information Memorandum, over the course of the next 10 days, detailed negotiations were held with a number of parties resulting in competing overs from 5 independent businesses including two £100m+ turnover companies. Meeting were arranged with the Director and key staff to ensure a seamless transfer of contracts.
Negotiations were complicated by the manner in which the Company invoiced clients with 4 different invoicing periods that did not correspond to the dates that staff were paid. With the impending December payroll that the Company could not afford to meet, negotiations with all parties not only centred around the total consideration payable but also the timing of the payments as payroll had to be made prior to the actual sale of the business and required ensuring good faith on all sides, including the factoring company that had a charge over the assets of the business, to enable the mechanics of the sale to work.
Subsequently an agreement was reached with the highest bidder for £210,000 with the balance after payroll had been made payable on post-appointment completion. As a result , this successful sale not only resulted in the TUPE transfer of the head office staff but also of the c120 security staff allowing them to have a very festive Christmas!
Subsequent to the sale process being completed, Williams & Partners assisted the Administrator with a detailed account of our actions in line with the requirements under SIP 16.