The Insolvency Service’s update this month on Davis Acquisitions Ltd is a worrying reminder that some firms are still taking advantage of directors when they’re under financial pressure.
Some unlicensed operators promise a quick way out of debt, using impressive websites and convincing reviews to gain trust. In reality, they aren’t working with a licensed insolvency practitioner, and they’re carrying out unregulated work that puts both directors and creditors at risk.
What happened with Davis Acquisitions Ltd?
Davis Acquisitions was wound up on 30 September 2025 after being found to act as a front for unlicensed insolvency activity. The Manchester-based company worked with already-banned operators to target struggling businesses, promising directors they could sell their company within 48 hours and “leave debts behind.”
No licensed insolvency practitioner was involved, which meant no one was protecting creditor interests or ensuring compliance. Investigators described the business as misleading and uncooperative, with its actions ultimately deemed against the public interest.
Sadly, this isn’t the first time this has happened, and won’t be the last. So, how do you spot these schemes?
How to spot the warning signs
For accountants, these schemes can be hard to spot at first, especially when clients come forward already convinced they’ve found a legitimate solution. The warning signs usually include promises that seem too quick or too easy, claims of being able to “sell” a company within days or wipe out debt entirely.
They’ll often avoid using words like insolvency or liquidation, preferring vague phrases about “business transfers,” or “fast-track exits.” There’s rarely any transparency about who’s running things or what happens to the company after it’s “sold.”
You can advise clients to look out for any of the following:
- Promises of instant fixes or 24-48 hour company sales
- Language that skirts around insolvency or liquidation
- Vague or missing details about the people or process involved
- No mention of a licensed insolvency practitioner
- Urgent or pressurised sales tactics
Even just one of these should be a warning sign that the company needs to be properly looking into before trusting them with a company closure.
Why it matters
Accountants are often the first person a director turns to when they’re struggling financially. During this conversation, it’s best to encourage clients to speak with a licensed insolvency practitioner, whose credentials can be checked easily online through bodies like the ICAEW, IPA or ICAS.
The Davis Acquisitions case is a clear reminder that there are no quick fixes when it comes to debt, and entering into anything that skips proper, licensed advice is a huge risk for everyone involved.