fixed fee insolvency sales

insolvency and business recovery image

£1,495 (excluding VAT and disbursements) for a business sale
£750 (excluding VAT and disbursements) for an asset sale

We have developed a simple sale agreement for use by insolvency practitioners on small sales. This is in the form of a letter in plain English, which is easily understandable by the buyer and is designed to avoid or minimise the involvement of other solicitors. In appropriate cases, it can save time and costs, and thereby improve the return to creditors.

 

The letter of sale is designed to fill the gap between an invoice sale and a full-blown sale agreement. It can be used for both asset sales and business sales. It is particularly effective in sales by insolvency practitioners back to the directors of the company.

 

The letter of sale will be drafted by an insolvency lawyer and will be a tailored product. It will contain all of the exclusion clauses and indemnities expected by insolvency practitioners.

 

Our aim is to produce a first draft of the letter of sale that is as close to the final version as possible. By adopting this approach, we can reduce the time spent in negotiations with the buyer and can complete the sale with the minimum of fuss.

 

We can also offer fixed fees for ancillary work such as drafting the documents relating to an administrator’s appointment or advising the insolvency practitioner as to the validity of any charges over the company’s assets.

what is included in the fixed fee?

  • Taking instructions
  • Preparing the first draft of the letter of sale
  • ‘Fine tuning’ the terms of sale
  • Completing the sale

what is excluded from the fixed fee?

  • Protracted negotiations with the buyer
  • Liaising with secured creditors
  • Additional drafts of the letter of sale
  • Ancillary documents, such as property transfers 

 

how do I find out if my situation is suitable for the fixed fee product?

The letter of sale will normally be suitable for simple sales up to £75,000, although we would be happy to discuss a fixed fee for sales above this figure.

 

For more information please contact Lee Sennett, Nick Keitley, Paul Rippon or Melia Hirst.