The Right Time to Liquidate Your Retail Company

A common divergence for small business owners comes when deciding to sell to a potential buyer or opting for the liquidation of company assets – an important consideration after having learnt about the types of liquidation and its associated costs.

 

Undergoing liquidation of a company brings about the end of a business by the process of converting assets into cash to pay shareholders, creditors, and other parties involved.

 

Our piece today will be dialing in on small retail businesses and why they should consider the liquidation of their company should they find themselves in the following situations:

 

Lack of Interest from Family to Conduct Business

While a number of family owned businesses stand the test of time through each generation, the transitional capacity involved is an arduous process for both the owner and heir.

 

Numerous issues can be responsible when trying to pinpoint why heirs are not welcoming to the idea of running the family business – for example, the burden of responsibility may be too great, other business investments may have already garnered their interest, or they may not have the required skillset to operate the company. Reasons such as these can result in opting to liquidate company assets.

 

Bankruptcy Is Not Viable

Insolvent businesses arise from market conditions, non-paying customers, and/or increase in competition. It is understandable to want to avoid the stigma associated with bankruptcy, especially should you not be able to rectify an insolvency. Business owners that are incapable of securing the owed payments on time are advised to liquidate their company assets, or settle a debt payment or settlement plan with creditors.

 

Initiating a New Business

It is not uncommon to only find a small number of buyers with a serious inclination towards your company; incipient entrepreneurs may prefer to learn an industry from scratch rather than purchasing an existing company with outstanding issues, such as archaic distribution modalities, obstinate employees, and/or dated inventory.

 

Always Work with the Best Team

No matter the reasoning behind the liquidation of a company, it is tantamount to work alongside a reliable team with a proven track record to ensure you secure the highest returns possible, as easy as possible. This is the philosophy we have been successful at providing for over 85 years at Infinity Asset Solutions. Our retail and business liquidation service has provided countless industries with the solutions they need – let us do the same for you!