How to buy a business in administration as a going concern

Last updated 2026-09-04.

When a company goes into administration, the first aim is to rescue it or its business, not to close it down. That opens a door a liquidation does not: the chance to buy a whole trading business, keep it running, and take on its customers, its name and its assets in one go. These deals move quickly and are decided by the administrator, so knowing how the process works puts you in a position to act.

What a going concern sale is

Buying a business as a going concern means buying it as a working operation rather than as a pile of separate assets. You take the trade, usually the business name and goodwill, the assets used in it, and often the benefit of ongoing contracts and the workforce. The value is in the fact that it keeps running, so customers stay, orders keep flowing and the brand survives. That is worth far more than the same assets sold off piece by piece, which is exactly why administrators try to sell this way where they can.

Why speed matters so much

A trading business loses value the moment it wobbles. Customers drift, suppliers tighten terms, staff leave, and every day of uncertainty erodes the goodwill you would be buying. Administrators know this, so going concern sales often happen fast, sometimes within days of appointment. The practical lesson is blunt: if you want a business in administration, you have to be in front of the administrator early, with your interest clear and your funding ready. A buyer who appears late, however keen, has usually missed it.

Pre pack sales

Sometimes the sale is arranged before the administrator is formally appointed and completed immediately afterwards. This is known as a pre pack. It is used when a business would lose most of its value if it stopped trading or if news of its troubles spread, so the sale is lined up quietly and closed at once to preserve what is there. Pre packs are common and legitimate, and there are transparency rules around them, particularly where the buyer is connected to the old company. If you are buying through a pre pack, take advice so you understand the process and your position.

What you are taking on

Buying a business is more involved than buying assets, because you are taking on a living operation. Employees are usually the biggest factor. Employment law can transfer existing staff to the buyer of a going concern, together with their rights and continuity of service, so you need to understand the workforce, the wage bill and the position before you commit. You will also want to know about ongoing contracts, leases, suppliers and any liabilities that could follow the business. None of this is a reason to be put off, but all of it is a reason to take proper legal and financial advice before you sign.

How to approach it

Deal only with the appointed administrator, never the former directors. Register your interest early and clearly, say what you want to buy and how you would fund it, and show you can move at the pace the situation demands. Ask what is being sold, whether it is offered as a going concern or in parts, what the employee and contract position is, and the timescale. Be ready for a fast, as seen deal on the administrator's terms. Our guides on how to contact the office holder and how to buy assets from a company in liquidation cover the approach and the asset side in more depth.

Common questions

Company information, not advice. Buying a business carries legal and employment obligations, so always take professional advice before you commit.