Company going into Liquidation? Why are auctions your best bet?
If your company is heading towards liquidation, it is likely that you will have some questions as to exactly what happens during this process. The first thing you should know is that there are in fact two ways a company can go into liquidation – voluntarily, through a procedure known as a Creditors’ Voluntary Liquidation (CVL), or involuntarily, through a compulsory liquidation where a creditor will petition for your company to be wound up by the courts. During the liquidation process the assets of the insolvent business are sold and the proceeds realized are used to repay as many creditors as possible.
While the exact steps taken will vary depending on the type of liquidation, both processes will be overseen by an insolvency practitioner, or official receiver, and will involve the sale of all of the business’s property, assets, and holdings, followed by the complete dissolution and closure of the company. In other words, whether the liquidation is voluntary or compulsory, the result will be the same; creditors are paid as much as possible and the company ceases to exist.
Liquidating your business through a live or online auction market is the fastest, easiest, and most efficient way to convert assets to fair market value cash. Instead of waiting for an offer that may never come, auction marketing creates a free market environment with qualified buyers on a predetermined sale date. The auction not only provides a powerful live bidding process but allows the seller the benefit of a date certain for the sale. Inefficiencies related to multiple showings, fruitless negotiations, and extending sales periods are eliminated.