Liquidating assets in a sale can sometimes be the smartest move for a business owner in New York who is no longer making money. When a business is not turning a profit, selling the business may not be possible because there may be no interested buyers. Before liquidating assets to get out of a business, it is important for a business owner to work out a plan.
All of the merchandise and other assets that belong to a business should be inventoried before commencing the liquidation process. A business owner should then assess the value of each item and prepare it for sale. In a liquidation sale, a business owner should only expect to receive at least 20 percent less than the retail value of the items.
Before holding a liquidation sale, a business owner may want to consider whether or not the sale will be worth the time and expense. It is also important to decide what kind of liquidation sale to hold. A business owner could have a retail going-out-of-business sale, an Internet sale or a sealed bid sale. The type of sale that is best will depend on what kind of merchandise is being liquidated and whether confidentiality is important to the business owner.
When business owners have more liabilities than assets and no other alternatives are feasible, they may need to have their assets liquidated by a trustee as part of the Chapter 7 bankruptcy process. An attorney may be able to help a business owner with the process of filing for bankruptcy and attending the meetings with creditors.