How do you liquidate your company?


Quick Answer

People wishing to liquidate their companies should takes steps such as assessing their inventory, establishing its value, hiring an expert to conduct the sale and choosing the proper type, time and location of the sale, notes the U.S. Small Business Administration. People liquidating company assets should consult with their attorneys and accountants prior to engaging in the liquidation process, and they should engage the cooperation of their creditors.

Continue Reading
How do you liquidate your company?
Credit: moodboard Cultura Getty Images

Full Answer

When liquidating a company, owners should prepare photographs, serial numbers and descriptions of each asset, advises the U.S. Small Business Administration. They should also clean and repair any items they are selling and be prepared to demonstrate their uses. Company liquidators should hire a qualified appraiser to assign proper liquidation values on merchandise and wait for the appraisal prior to making any sales.

Public and Internet auctions, retail, Internet, sealed bid, and consignment sales are options for owners liquidating a company, states the U.S. Small Business Administration. Some auction companies offer to conduct both traditional and online auctions, or business owners can opt to sell merchandise on their business websites. People who choose going out of business sales should be careful to follow state regulations related to these types of sales. Liquidation sales should be convenient for shoppers and, if possible, held at the business location so buyers can see the equipment in a working setting.

Learn more about Managing a Business

Related Questions