Is Your Business Closing? Helpful Tips for Liquidating

If you wish to close your business and have been unable to find a buyer, liquidating assets can offer a valuable solution.  Although before you do anything, you need to take the time to set up a plan, which should include consulting with your attorney and tax advisor.  Also, remember that if you are liquidating assets to satisfy creditors you may need to obtain their consent to do so. 

To get started, make a list of all the company’s assets such as equipment and machinery, office furniture, technical devices, vehicles and property that the business owns.  Include your inventory and intangible assets like business licenses, permits, patents, or trademarks as well as your customer list and business contacts. 

Make a note the condition of the asset, the age, maintenance history and repairs, and any warranty information along with taking photos.  Evaluate the condition of an item, and if anything is worn out or obsolete, it can be donated and used as a tax deduction or recycled.  If you have leased equipment, find out how much you still owe and whether it makes sense to buy it if you think you could sell it for more money than you owe. 

To establish the liquidation value of your assets, it is a smart idea to work with a qualified appraiser.  You are going to want a written liquidation value appraisal before you consider any purchase offers.  By using the services of an a company that specializes in asset recovery and disposition, they can assist with the sale as well as help to determine the best type of sale for your situation whether it is through an auction or liquidation.

Once you start to liquidate these assets, remember to keep good records of the marketing process, purchaser, and the amount of money you received.  You will need all of this information for your tax returns.

Rabin Worldwide is an international company that specializes in creating liquidity for complex manufacturing facilities with idle or marginally productive assets.  Past auctions include names such as Hostess, Braniff Airlines, Montgomery Ward, and the Railway Express Agency.  Please contact us to discover how we can help you with our professional asset liquidation process.