When a Business Closes, Steps to Liquidating the Assets

Once the decision is reached to close a business, there are some steps to take as an owner of the company.  Even if the decision to close is voluntary and not a forced liquidation, you will most likely want to sell off the company’s assets.  It is recommended that before you do anything, have a plan in place and consult with your tax advisor and attorney.  Also keep in mind; in many cases you will need the consent of your creditors before you proceed.

One of the first things you can do to get started is to make a list of all the property the business owns along with the equipment and machinery, office furniture, technical devices, and vehicles.  While doing so, take photos, note the condition of the asset, age, maintenance history and repairs, and warranty information.  Any of your assets that are worn out or obsolete should be donated and used as a tax deduction or recycled if possible.  On leased equipment, inquire as to the amount still owned and consider buying it outright if you know it can be sold for a higher amount. 

Add to your list any intangibles assets you may have that are of value such as trademarks or patents.  Also your competitors may be interested in any favorable contracts you have with suppliers as well as your list of customers and business contacts.     

At this point, a company that specializes in asset recovery and disposition services can be beneficial as you may not have the time or the expertise to efficiently handle this part of the process.  Look for a company that has a proven track record.  They will be able to provide you with professional appraisals of your assets, and if you wish, also assist with the actual liquidation process.  Furthermore talking to professionals can help you to determine what type of sale makes the most sense for your business.  

Rabin Worldwide is an international company that specializes in creating liquidity for complex manufacturing facilities with idle or marginally productive assets.  Rabin’s operations include selling entire plants, multiple plant locations, or surplus individual items by auction or liquidation and much more. Past auctions include names such as Hostess, Braniff Airlines, Montgomery Ward, and the Railway Express Agency.  Please contact us to discover how we may assist with your asset liquidation process.