Liquidation and Bankruptcy in Business
Businesses of all sizes and varieties file for bankruptcy all the time. The reasons behind needing to liquidate assets and file chapter 11 will vary from specific situation to situation. For some businesses, going out of business may be the reason. Others have too much overhead. Some businesses may owe too much to investors or creditors.
One common thread in business bankruptcy and business liquidation is the need for assets to be recovered and for equity to be salvaged as much as possible. Any business with excess inventory that needs to be sold off is faced with a dilemma. In facing bank and legal fees, it is common for businesses to need to convert inventory to cash as quickly as possible. But the business also wants to recoup as much value from their assets, equipment and inventory as possible. A good liquidation company should be able to assist in both appraising and assessing the inventory the business possesses, as well as purchasing or auctioning off the inventory.
Appraising the business’s assets, equipment and inventory accurately is especially important in matters of bankruptcy, since the facts and numbers in the appraisal are often submitted as evidence in the bankruptcy motion. Again, a reputable appraiser should not only provide an accurate assessment and valuation of the inventory and equipment, but also stand confidently behind the figures they determine.
Liquidating a business is sometimes a very easy and fast process, while in other circumstances, business liquidation can be arduous and time consuming. The best approach to a successful strategy when going out of business or liquidating a company is to hire a professional liquidation company that specializes in such services. Many business owners and managers will attempt to cut corners and save costs by managing the business liquidation themselves. It is best, however, to hire a professional to manage the appraisal and valuation.
In most cases of business bankruptcy, liquidating a business through a professional liquidator is a sound choice – one that will provide peace of mind and solid value to the business owner.
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