Brought From Administration

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Online wedding and celebration supplies business Confetti has been bought out of administration in a deal that safeguards 34 jobs, administrators at RSM Tenon have confirmed. The Manchester-based company was placed into administration last month, days after being acquired by online retailer The Hut Group.

Sometimes however closure can be the only way out of trouble, for instance the closure may be forced by a change of regulations that means the business is no longer a viable one, an unforeseen chain of events may add to the pressure of daily life and force the closure.

At this stage it's also important to consider methods of how you will manage the sale when the time comes.

The business has now been bought by North West entrepreneur George Buchan who established a new company called Confetti Celebrations to complete the transaction. He has built a number of IT businesses including JM Computing and Service Source Europe. He is also a director of technology company ACAL Supply Chain.

Even if the business is not a profitable one, you may be able to find some hidden value or there may be some potential value in the business for someone else to realise, leading to the potential to attract investors.

When considering the above action it is important that all of your tax and any other official records concerning the business are up to date at the time when you decide to close or sell.

This is because the buyers solicitors will need to perform due diligence checks, involving gathering all information regarding the business so that any potential suitor can make an informed decision and modify any terms of sale if necessary.

You will further need to consider the intangibles, such as intellectual property, customer relationship strength, business equipment, assets, inventory, debtors and growth potential and the valuation of any other assets such as property, level of debt and any other liabilities.


About the Author:
Rickitt Mitchell provide acquisiton finance advice and business acquisitions advice.



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