Insolvency trade body R3 released figures earlier this month claiming that acquisitions of insolvent businesses in the UK fell in the second half of 2010.

According to the organisation, one in 13 UK deals in the period involved the acquisition of insolvent companies, down from one in 11 in the first half of the year.

R3 president Steven Law said that the drop in deals was probably down to a drop in insolvencies, rather than a loss of appetite for insolvent businesses; liquidations were down 12% year-on-year in the fourth quarter of 2010, while administrations dropped 25%.

He added: "R3 members predict that this will be a difficult year for business so potential buyers should be aware that in the run-up to recovery there is still a window of opportunity to acquire businesses that are potentially profitable, but in need of sound management."

However, the BPIF warned that the print industry had grown increasingly hostile to attempts to turnaround insolvent businesses, even when such attempts are genuine, largely as a result of the damage done by pre-packs.

Director of corporate affairs Andy Brown said: "We have seen cases of well run, successful businesses that have tried to turn around a company and found themselves having problems with paper suppliers.

"They do their best effort to turn the business around but they can't and end up ruing the day they got involved. It used to be the case that companies could isolate the new business from the existing one, push it to one side, that isn't possible any more.

"Creditors are so sensitive now, and they are under pressure from other customers, they are often told that if they deal with a pre-pack they will lose business."