What exactly is a pre-pack evaluator report?

Think of it as an independent second opinion. When a company in administration is being sold to someone connected with it (like a director), the Administration (Restrictions on Disposal etc. to Connected Persons) Regulations 2021 require an independent evaluator to review the deal and report on whether the consideration and the grounds for the disposal are reasonable. It’s not about approving or blocking the sale — it’s about ensuring someone objective has looked at it carefully.

When do I need one?

You’ll need a qualifying report if a company is entering (or has entered) administration and a substantial disposal is planned to a connected person within the first eight weeks. “Connected” includes directors, shadow directors, their close associates, and companies they control — as defined in insolvency legislation. If you’re unsure whether the Regulations apply, just ask us. We’re happy to talk it through at no cost.

Is this legally required?

Yes. It’s a legal requirement under the 2021 Regulations (unless creditor approval is obtained instead, which is rarely practical in pre-pack situations). But it’s worth seeing it as more than a regulatory hurdle — the report protects everyone involved and gives confidence that the transaction has been properly considered.

How quickly can you produce a report?

We deliver completed reports within 24 hours of receiving all the information we need. Pre-pack situations rarely allow for lengthy delays, and we’re set up to respond quickly without compromising quality. If you’re in a genuinely urgent situation, pick up the phone and talk to us.

What information will you need?

Details about the company and its financial position, the proposed sale and who’s buying, marketing undertaken, valuations, creditor information, and the administrator’s reasoning. We won’t just send you a vague list — we’ll guide you through exactly what we need. If something is missing, we’ll work with you to fill the gaps.

How much does it cost?

Fees depend on the complexity of the situation and the volume of information to review. You’ll receive a clear, upfront quote with no hidden extras. We understand you’re dealing with a business in financial difficulty, and our pricing is fair and competitive. Contact us for a quote based on your specific circumstances.

What if you don’t think the transaction is reasonable?

If we conclude the case is not made, we’ll say so clearly in our report and explain why. This is known as a “case not made” opinion. The connected person may instruct another evaluator for a separate report. Importantly, the administrator may also still proceed with the disposal, provided they submit their reasons for doing so to Companies House and creditors alongside the report. We assess reasonableness, not perfection — we understand the real-world constraints you’re dealing with.

Are you genuinely independent?

Yes. Tim is a non-appointment-taking Insolvency Practitioner, which means he does not act as administrator, liquidator, or other office-holder. He has no conflicts of interest in any evaluation. He also maintains specialist Professional Indemnity Insurance specifically for evaluator work, giving everyone proper protection and peace of mind.

Working With Us & The Regulations:

What’s SIP 16?

SIP 16 is the Statement of Insolvency Practice that sets out how pre-packaged administrations should be handled. It covers marketing, valuation, reporting, and — crucially — the requirement for an evaluator report when connected parties are involved. It was updated in April 2021 to reflect the new Regulations. Think of it as the professional rulebook that ensures pre-packs are done properly and transparently.

Who is responsible for instructing the evaluator?

Under the Regulations, it is the connected person who is responsible for instructing and obtaining the report. Where multiple connected persons are involved in the same disposal, only one report is required — but it should be instructed by the person with the greatest knowledge of the company and the proposed transaction, typically a director. The connected person can consult with the insolvency practitioner on the suitability of an evaluator before instruction.

What must the qualifying report cover?

The report must state whether the evaluator is satisfied that the consideration to be provided and the grounds for the substantial disposal are reasonable in the circumstances, and set out the evaluator’s principal reasons. It must also disclose whether any earlier qualifying reports have been obtained in respect of the same disposal.

What happens after I receive the report?

The administrator includes the report in their proposals to creditors and files it at Companies House, as required by the Regulations. This gives creditors and other stakeholders transparency about the connected party transaction and the independent assessment. If anyone has questions about the report, we remain available to clarify.

What if I don’t have all the information yet?

Contact us anyway. We can give you guidance on what you’ll need and start planning while you gather everything. Our 24-hour turnaround starts when we have complete information, so we’re not watching the clock while you prepare. And if something genuinely isn’t available, we’ll work with you to find a solution. If your question isn’t answered here, just ask. There’s no such thing as a silly question, and we’d rather you understood everything clearly than felt confused or worried.

Still Have Questions?

Get in touch for a friendly, no-obligation conversation about your evaluator report needs.

tim@pre-packevaluators.co.uk