Creditor's Report

Evaluator’s Report

    1

    Introduction

    2

    Insolvent Company Information

    3

    Personal Guarantees

    4

    Registered Charges

    5

    Insolvent Summary

    6

    Proposed Purchaser

    7

    Further Purchase Information

    8

    Substantial Disposal

    9

    Finish and Submit

    Step 1: Introduction

    Step 2: Insolvent Company Information

    Step 3: Personal Guarantees

    Step 4: Registered Charges

    Step 5: Insolvent Summary

    Step 6: Proposed Purchaser

    Step 7: Further Purchase Information

    Step 8: Substantial Disposal

    Step 9: Finish and Submit

    What is an Evaluators Report?

    The evaluators report is a requirement that was introduced under the Administration (Restrictions on Disposal etc. to Connected Persons) Regulations 2021. This regulation relates to circumstances where a company is due to enter into administration and it is anticipated that there will be a sale of a substantial proportion of the business to a connected party within 8 weeks of the appointment. In these circumstances, there is now a requirement to obtain the consent of the Company creditors, however, given the time frames that are in place, it is often impractical to gain such consent. On these occasions, where consent of the creditors cannot be obtained, the purchaser is required to obtain an evaluators report.

    This report is prepared by an independent third party, who will review and provide their opinion on the acceptability of the proposed transaction. The party preparing the report must have the appropriate experience to enable them to prepare a qualifying report.

    Do I need an Evaluators Report?

    Where the purchaser is connected to the insolvency Company by way of directorship or shareholding, as well as the purchaser having an association to the insolvent company, such as being the partner or sibling of the directors/shareholders of the insolvent company, then an evaluators report will be required.

    If you are unsure whether you meet this criteria, please do not hesitate to get in touch and we can advise you accordingly.

    What will be needed to prepare the Evaluators report?

    Various information will be requested when you complete the application for the evaluators report. This will include, however may not be limited to the following:

    • Details of the purchasing entity
    • Details of the insolvent entity
    • The insolvency practitioner to be appointed
    • Statement of Affairs/Estimated Outcome Statement
    • Details of the Company Creditors
    • Information relating to the failure of the Company and changes to be implemented
    • A copy of the valuation of the business
    • The consideration for the purchase and the basis on which the consideration will be paid.
    • Historical financial information of the insolvent company
    • Forecasts for the purchasing entity to include cashflow and balance sheet.

    When will the Evaluators Report be ready?

    Following receipt of all requested information and payment, assuming no further information is required, we aim to issue the evaluators report by close of business the following day.

    How much will the Evaluators Report cost?

    The Evaluators report is prepared on a fixed fee basis of £1,500 plus VAT. The payment of this invoice is required before work will commence. Following the submission of the form, an invoice will be issued for payment by return.

    Why use Sterling Advisory Limited?

    Sterling Advisory Limited is well placed to provide a cost-effective evaluators report, prepared by a qualified Insolvency Practitioner. With wide reaching insolvency experience across a multitude of sectors, we are able to provide an opinion that is compliant with legislation, which will give you comfort that the proposed purchase you are about to undertake can withstand the scrutiny of creditors.

    Please provide details of the Company that is due to be placed into Administration.

    To include a breakdown of the trade and expense creditors, HMRC liability, loans, any third party and directors’ loans

    The amounts owed to them and whether they hold any security

    Please attach a copy of the last set of full management accounts prepared

    Please attach a copy of the last set of full accounts prepared

    Please provide the details of any personal guarantees that have been provided in relation to the insolvent company’s liabilities.

    Please provide details of all the registered charges over the Insolvency Company’s estate.

    Please provide details to assist us in determining the events leading up to the Administration and the reasons for it. In addition we will require a copy of the valuation report, this can be forwarded by the proposed Administrator if necessary.

    Please confirm whether you have a copy of the valuation report?

    Please provide a copy of the Valuation report

    Please give consent that we can gather the Valuation report from the IP?

    Yes

    Please provide information such as company and trading history over the course of the business which helps us understand the reason(s) for administration

    Please explain the steps taken to prevent the company from going into administration. E.g., Restructuring the company, injecting funds into the company, raising funds, etc

    Please provide details of the entity that will be purchasing the business and assets of the Company.

    List of all connected persons involved in the proposed purchase and how connected

    Nature of connection or connections to the company

    Details of involvement in any previous companies that entered formal insolvency for all connected persons involved in the proposed disposal

    What will be done differently by the purchasing entity to ensure that the purchaser remains viable and does not encounter the same financial issues as the insolvent company?

    Please attach a copy of the financial accounts for the purchasing entity to include a balance sheet

    Please attach a copy of the current balance sheet

    Please attach a copy of the forecasts and business plans for the entity

    Has a viability statement been prepared?

    Where a deferred consideration payment is being considered, please provide a viability statement.

    Please provide details are the assets to be purchased and the consideration to be paid.

    Details of the offer made, broken down by category of asset. Please provide details of why the offer has been made at this level

    Basis on which the consideration will be paid, initial payments and any deferred consideration

    Details of and security of personal guarantees that have been provided in relation to any deferred consideration

    Please confirm whether any other evaluators reports have been obtained?

    Please also provide copies of any previous reports obtained?

    Please ensure that all of your information is correct before submitting.

    This will ensure the best possible evaluation.