Liquidating business nz
When is the time to consider the asset liquidation process?The three main reasons businesses consider liquidating assets are 1) when assets are no longer needed (surplus assets), 2) the business needs additional working capital, or 3) to satisfy creditors.Before liquidating assets it may be helpful to consult your lawyer and accountant or other tax professional for assistance in planning the liquidation.Also, remember that if you are liquidating assets to satisfy creditors you may need to obtain their consent to do so.Inventory the assets your business owns and wishes to liquidate.
You may also need this information for your tax returns.
There are multiple options you should consider in order to get the liquidity you need from your assets. Whatever you decide may depend on the specific situation of your assets, their condition, variety, quantity, the time you have to dispose of them, macro market conditions and more.
You may consider conducting an auction for your assets, or you may decide to liquidate the assets (for the difference between the two methods see "Liquidation Sale vs. Liquidation value is the anticipated price which an asset is likely to bring under certain conditions including: Generally, due the existence of the above mentioned conditions, the liquidation value is considerably less than the Fair Market Value (retail value) in which both parties are typically motivated and neither is under compulsion to act.
To establish the liquidation value of your assets, work with a qualified appraiser.
Obtain a written liquidation value appraisal before you consider any purchase offers.
After you identified your options, and established the liquidation value for your assets, you should have a proactive strategy for recovering your asset value.