New legislation means that administrators who are selling a phoenix pre-pack to a connected or interested party require independent evaluation.
Malcolm Niekirk tells you everything you need to know and what he has taken from his experience as an independent evaluator so far. He discusses the process of evaluation, answering some FAQs.
Firstly…
Get in touch!
Drop me an email, or give me a call.
I’d like to hear about the plan; what the business is, why a pre-pack is being considered, and what the likely timetable is. That’s all without obligation. I’ll tell you what the fee is likely to be.
Next…
When it’s the right time, we’ll agree a fixed fee for my report.
I’ll send you my engagement letter. By then you will have engaged the proposed administrator, and you’ll be working with them.
Remember that you will need to allow time for you and the administrator to pass me the information I need. And I will need time to process it. It’s best to appoint me early, to avoid delays to the sale.
After that…
Once you’ve engaged me, I will:
- Send the report template to the administrator.
- Ask them for the information I need from them. (It’s all routine; they will have it for any administration of this type.)
- Send you a copy of the report template too. That will show you the work I need to do.
- I will also ask you for some information. It will mostly be about your plans for the business. It’s important to show that you are making necessary changes, to avoid repeating the need for an administration.
You must tell me if you have been to another Evaluator. I have to mention that in my report.
My work…
I will assess the information from you and the administrator and put the assessment in my report.
I will let you and the administrator know, at each stage, what my interim assessment is, so you can anticipate any criticism.
My report will rely mainly on the information from the administrator, particularly their (draft) SIP 16 statement. That is their own report to the creditors. In it they will explain:
- How the business has been marketed, to seek the best price for it.
- How it has been valued.
- Why the administration and sale is the right strategy.
- Who it is being sold to.
- What changes you are planning to make, to strengthen the business.
- When important events in the company’s history happened.
- Whether the company was running up more debts, after the planning for administration started.
- Their own role and independence.
I will check that statement to see that it contains all the information that it should, to comply with the administrator’s professional obligations (under SIP 16).
I will also consider how it reads, as a whole, and whether I think it is a clear description and explanation for those affected by the administration.
My conclusion…
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