Closing a Business: Company Liquidation Process
Category : Our Blog
It’s often a tough and painful decision to close a business. But when you take that big step, having the proper knowledge on how to “liquidate” (or turn into cash) what remains of your business that has value (it’s assets) can mean the difference between smooth sailing and big, big headaches. Company Liquidation doesn’t have to be the hard part of closing a business. Bulk Inventory Buyers understands completely that many businesses are going through. We specialize in helping you through this situation.
Tips to Find The Right Company Liquidation
- Identify What Has Value. First things first, you’ll need to identify just what your business owns and what money you can still reasonably expect it to pull in and collect on the way out. Make a list. This should include accounts receivable, rent owed to you, security and then the physical property that has worth like: real estate, vehicles, furniture and art, computers, phone and office machines and so on. For the physical property be sure to note how much was payed for it, who payed for it (yourself, a partner, the business) and who actually owns it if not the business itself.
- Do a Mental Inventory of Intangible “Property” Your Business Owns. Many people don’t think of their non-physical properties that have worth such as their contracts with vendors, lease, list of customers, company name and logo, further accounts receivable and possibly more.
- Keep Accurate, Detailed Records. As the process of liquidating your assets proceeds these will be worth their weight in gold. Log the asset, the amount of money you were able to liquidate it for, to whom, the date and so on. This is security should creditors attempt to take you to court or contest your good will or should you need to pursue bankruptcy. Come tax time you’ll need this information as well.
- Be Fair. Always make a honest and hard effort to get the most money you can out of your businesses assets and never, ever try to cheat your creditors. Take full advantage of things like Craigslist, bid4assets.com and eBay as well as websites that specialize in your businesses own industry. Don’t forget you have a legal responsibility to your creditors to get market value for everything you sell. Playing games like giving away or selling things cheaply to friends, family or associates is fraud and not worth the legal problems let me assure you.
- Only Sell What’s Yours. Make sure you keep separate any assets that are tied to a loan or being held as collateral. You can’t legally sell these, so once again, don’t.
- Look for Refunds. Collect refunds on workers compensation and liability insurance you’ve prepaid, if your contracts allow it. Nearly all policies are payed in advance so you can likely expect at least some of this to come back to you.
Does all this sound complicated? It should, because it most often is. A wise decision for those who haven’t gone through this process before is to bring in the help of professionals like company x. This will insure that you are protected and most likely to collect the maximum value off of your companies liquidated assets. Not to mention the peace of mind having liquidation specialists. like company x on the job can bring, which in itself is near priceless.