When selling a business there is much to be considered before deciding on the method of sale. The first thing to do is to have a valuation of the business by an independent Certified Public Accountant that specializes in valuations. This will give you a clear picture of the value of the business. From there it can be determined if the business should be sold as a whole or if it should be liquidated by selling the assets off separately.
To sell your business is a hard decision in the first place, because so much hard work has gone into building it. But with liquidation the owner should realize the business will cease to exist and the employees will no longer have a place to work. Employees may be due salaries, severance, leave balances and more. All of these costs may make voluntary liquidation a nonviable option. It is always wise to use a business broker to assist you in cases like this.
Assets are often seen by the owner as more valuable than they really are. A careful valuation of assets is needed to determine the actual market value. This will allow for a sound decision as to the best way to sell your business. In a voluntary liquidation, payments to creditors must be considered, there must be enough money to pay creditors or you will be left with debt after the liquidation. If the liquidation is part of a bankruptcy the court will payout the proceeds to the creditors in accordance with the bankruptcy plan and then the remaining debts will be discharged.
Liquidation is usually a last resort and is used to pay off the business debts. Sometimes the owner is unable to continue running the business and is considering liquidation as a means of shutting it down. In this situation, the owner should seek the help of a business broker. Any business that is a profitable going concern may have considerable value on the market and can be sold intact as a going concern. Often business owners do not understand the liquidation process and all that it implies. They may not realize that the business has value and can be sold as a going concern. Whatever the case maybe, all options should be thoroughly scrutinized before deciding on how to sell a business. In rare circumstances voluntary liquidation maybe the best way, but only if the valuation shows that the assets are worth more sold separately than the business as a whole.
For more information click on Sell Your Business
Cooper City Office
10620 Griffin Rd B-105,
Cooper City, Fl 33328
4720 NW Boca Raton Blvd,
(NW 2nd Ave) D-103
Boca Raton, Fl 33431