Finally, don’t overlook your intangible assets like assignable leases and in-demand business licenses, permits, patents, trademarks, and customer lists.Establish Liquidation Value Liquidation value refers to the amount you can expect to recover in a forced-sale situation.
Itemize and Prepare Your Assets If for whatever reason you decide not to use a liquidation professional, preparing a current inventory of your business assets in preparation for sale is an important first step.
In doing so, try to include photographs, serial numbers, and a brief description of the condition of each item; doing so might save you considerable headaches, especially if you’re later asked to explain your sale to creditors or the IRS.
Choose the Best Type of Sale The next step is to decide what type of sale to hold.
One, or a combination of several of the following types of sales, may be appropriate: Choose the Best Time It may seem obvious, but when all is said and done, choosing the best time for your sale will likely be the biggest determining factor in its success.
If not, the liquidation will proceed as a creditors' voluntary winding-up, and a meeting of creditors will be called, to which the directors must report on the company's affairs.
Where a voluntary liquidation proceeds as a creditors' voluntary liquidation, a liquidation committee may be appointed.In United Kingdom and United States law and business, liquidation is the process by which a company (or part of a company) is brought to an end, and the assets and property of the company are redistributed.Liquidation is also sometimes referred to as winding-up or dissolution, although dissolution technically refers to the last stage of liquidation.Keeping outdated or worn-out equipment, furniture, or inventory will only diminish the appeal of your marketable items, so why not donate them to an appropriate charity and receive a tax deduction?And if you have items that are leased with an option to purchase, don’t just turn them back in — you might be able to pay them off for a few hundred dollars and sell them for a few thousand.The process of liquidation also arises when customs, an authority or agency in a country responsible for collecting and safeguarding customs duties, determines the final computation or ascertainment of the duties or drawback accruing on an entry.