Can I Buy Back Assets During or After a Liquidation?

When a company enters liquidation, directors often worry that everything the business owns will be lost forever. This can be particularly difficult where assets still have value or are essential to a future venture, such as equipment, vehicles, stock, intellectual property, or even the company name. A common and perfectly reasonable question is whether it is possible to buy back assets either during or after the liquidation process.


The short answer is yes, it is often possible to buy back assets from a company in liquidation. However, there are strict legal and ethical rules that must be followed. This article explains how asset sales work in liquidation, what directors are allowed to buy, when purchases can take place, and the risks of getting it wrong.

What Happens to Company Assets in Liquidation?

When a company goes into liquidation, control of the business and its assets passes from the directors to a licensed insolvency practitioner, known as the liquidator. The liquidator’s primary duty is to realise company assets and distribute the proceeds to creditors in line with insolvency law.

Assets can include:

  • Machinery and equipment
  • Vehicles
  • Stock and work in progress
  • Office furniture and IT equipment
  • Property or leasehold interests
  • Intellectual property such as websites, domain names, trademarks, and goodwill
  • The liquidator must act in the best interests of creditors, which means obtaining the best possible price for those assets.

Can Directors Buy Assets from a Company in Liquidation?

Directors are not automatically banned from buying assets from their own company once it enters liquidation. In fact, it is relatively common for directors to purchase assets, particularly where they plan to continue trading through a new company or as a sole trader.

However, the purchase must meet strict requirements:

  • The sale must be at full market value
  • The process must be transparent
  • The liquidator must be satisfied the sale is in creditors’ best interests
  • Directors cannot simply take assets back or agree a discounted price because of their previous involvement with the business.

Buy Back Assets During or After a Liquidation

Location: London, UK

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