The Example Arms, Anytown
● RED
Verdict
RATING: RED
The advert says the pub has "traded successfully for 8 years". In this sample, the company that ran it until last year went into creditors' voluntary liquidation, and the liquidator sold the business and assets to a company with a director in common[1][3]. That is a phoenix pattern: it is not proof of wrongdoing, but it leaves it unclear who can legally sell the assets, the lease and the licence. The lease also has about 3 years less to run than the advert implies[6].
Next step: don't offer until the agent confirms in writing who is selling, who owns the assets, the lease and the licence, and the real lease dates. Refer the liquidation history to your solicitor.
Summary (sample findings)
| Check | Rating | Finding |
|---|---|---|
| Identifying the business | HIGH | Name hidden in the advert. Matched from a cross-listing with the same agent reference, interior photos and the food hygiene register. Confidence: HIGH[5]. |
| Companies House | RED | Previous operator (Example Arms Trading Ltd, fictional) in liquidation; current operator incorporated 6 weeks before the liquidator's sale, with a director in common[1][2]. |
| Liquidator's report | RED | Business and assets sold to a connected party for a small sum, part of it still unpaid at the last progress report[3]. |
| Gazette | AMBER | Liquidation notices for the previous operator. Nothing found for the current operator[4]. |
| Premises licence | RED | Licence still names the liquidated company as holder. Advertised Saturday hours run 1 hour past licensed hours[7]. |
| Food hygiene | GREEN | Rating on record, inspected within the last 2 years. Business name on record matches the trading name[5]. |
| Lease | RED | Landlord's published accounts give a start date 3 years earlier than the particulars imply. A rent review falls within 6 months[6]. |
| Business rates | AMBER | Rateable value is above the small business relief threshold the advert implies. Ask for the actual bill[8]. |
| Advert figures | AMBER | Weekly takings on one listing work out about 18% higher a year than the turnover on another. Micro-entity accounts can't settle it[9]. |
| Reviews | AMBER | Good overall average, but recent reviews are weaker, with repeated mentions of slow service (indicative snapshot). |
| Social media | GREY | Page matched to the venue by its address and website link. Posting stopped 3 months ago. Logged-in view NOT CHECKED. |
| Community asset / planning | GREY | Council site temporarily offline at the time of the check. To follow automatically as soon as the portal is back online. |
| Land Registry title | GREY | Prepared, not bought. Which titles to buy and why are listed for you to decide. |
Ownership timeline (sample)
- Year 1 Example Arms Trading Ltd (fictional) starts running the pub.
- Year 7 Anytown Inns Ltd (fictional) incorporated, with a director in common.
- Year 7 Example Arms Trading Ltd enters creditors' voluntary liquidation.
- Year 7 Liquidator sells the business and assets to Anytown Inns Ltd. Part of the price is unpaid.
- Year 8 The pub is advertised for sale as "trading successfully for 8 years".
Figure checks (sample arithmetic)
- Weekly to annual: £5,000 a week × 52 = £260,000 a year, against £220,000 on another listing (an 18% gap).
- Lease: 15 years from the start date in the landlord's accounts leaves about 6 years, not "about 9 years".
- Price multiple: no profit figure is given, so a multiple can't be calculated.
- Liquidator's valuation: the asking price is several times the price paid out of liquidation. Ask what has changed.
Questions for the agent (drafted for you to send; we don't send them)
- Which company or person is the seller, and do they own the business, fixtures and goodwill outright?
- Has the price paid to the liquidator been paid in full? Could you share written confirmation?
- Who is the current premises licence holder and supervisor, and has a transfer been made since the liquidation?
- Could you confirm the lease start date, term, current rent and the date of the next rent review?
- Will the landlord consent to an assignment, and is a guarantee or deposit expected?
- Which turnover figure is correct, and is it net of VAT? Could you provide 12 months of VAT returns and till reports?
- Are the trading name, website domain, booking system and social media accounts included in the sale?
- Is this a sale of the business and assets, or of the company's shares?
- What is the current business rates bill after any reliefs?
- Are there any staff transferring, and what are their terms?
Checks run and not run
Automated: Companies House, Gazette, food hygiene register, business rates.
Manual research: identifying the business, liquidator's report, licence register, landlord's accounts, reviews.
To follow (GREY): council community assets and planning pages (temporarily offline at the time; automatic follow-on update sent once back online).
Paid, prepared, not run: Land Registry freehold and lease titles.
Sources (sample: placeholders, not real records)
- Companies House: Example Arms Trading Ltd, filing history (sample link, accessed 1 Jan 2026)
- Companies House: Anytown Inns Ltd, officers (sample link, accessed 1 Jan 2026)
- Liquidator's progress report, connected-party sale disclosure (sample link, accessed 1 Jan 2026)
- The Gazette: insolvency notices search (sample link, accessed 1 Jan 2026)
- Food Standards Agency food hygiene rating record (sample link, accessed 1 Jan 2026)
- Landlord's published annual accounts, lease note (sample link, accessed 1 Jan 2026)
- Anytown Council public licensing register (sample link, accessed 1 Jan 2026)
- VOA business rates valuation (sample link, accessed 1 Jan 2026)
- Two business-for-sale listings for the same agent reference (sample links, accessed 1 Jan 2026)