Whether a business owner is retiring or they have to close down their business for other, less pleasant reasons, liquidating the company and its equipment can be a big job. However, liquidation lawyers in Singapore can help a business owner get out of the process with as little debt as possible. Below, potential clients will find a few tips on the business liquidation process.
Hire an Accountant and an Attorney
If a business owner is having issues with his or her creditors, they must get their permission before selling any items. An accountant and an attorney can help the client consult and negotiate with his or her creditors.
Inventory the Company’s Assets
Next, prepare a full inventory of business assets. Take pictures of items and record serial numbers and brief descriptions. These records can help when it’s time to file taxes and explain the reasons for business liquidation.
Find Items to be Liquidated
During this stage, the business owner and his or her team must decide what can be liquidated. Leased items should be returned to the owner, and if the business owner owes more on something than the item is worth, that item must be repossessed or kept and paid in full.
Put A Value on Items
Every piece of equipment has a value, and it’s important to research it by looking online and in the classified ads. If a business owner needs help, an appraiser can provide it.
Return Things to Suppliers
Many suppliers will reclaim their inventory and provide a refund. However, before offering these items, the business owner should understand the vendor’s return policy. If the company only provides a partial refund or store credit, it may make more sense to self-liquidate the inventory.
Sell Whatever is Possible
Business owners can have in-person and online sales, or they can call other local businesses to try to sell items at a discount. In most cases, items must be liquidated quickly, and offering a discount can help the business owner achieve that goal.
If the business owner is unable to sell off their inventory, they can consider hiring a liquidator and an attorney. These parties will come in, evaluate the assets and handle the sale in return for a portion of the profits.