What Happens To My Assets?
When a business closes, one of the most critical tasks is managing what happens to the company’s assets. Assets can include everything from inventory and office equipment to real estate and intellectual property. Upon dissolution, these assets must be liquidated, meaning they are converted into cash through sales. The liquidation process can take different forms, such as:
- Public or Private Auctions: Selling assets like machinery or equipment to the highest bidder.
- Liquidation Sales: Selling inventory or other assets over time to maximize returns.
- Direct Sales: Selling the entire business or assets to a single buyer, such as a competitor.
The proceeds from these sales are typically used to settle outstanding debts or, if there are no creditors, they can be kept by the business owner.
What Are Non-Cash Assets?
Non-cash assets are the tangible and intangible property owned by the business, which may include:
- Inventory: Unsold products or raw materials.
- Office Equipment: Computers, furniture, and office supplies.
- Machinery: Equipment used in manufacturing or production.
- Real Estate: Commercial property owned by the business.
- Company Vehicles: Trucks, cars, or other transportation owned by the company.
- Customer Lists: Your established relationships and contacts.
- Websites, Social Media Pages, and Phone Numbers: Digital assets that can have value.
These assets often attract a specific group of buyers, with competitors being the most likely to show interest. Because they operate in the same industry, your assets may fit seamlessly into their existing operations, making them more valuable. The market value of these assets is usually determined by an intermediary, ensuring a fair transaction for all parties involved.
Why Liquidate?
Liquidating assets is usually necessary to generate cash to pay off creditors, preventing business owners from facing personal financial burdens after closure. Additionally, selling assets can help recoup as much value as possible before walking away from the business.
Why You Need Professional Help
Each business closure is unique, and the outcome can vary significantly depending on factors such as debts, asset value, and market conditions. That’s why it’s essential to work with professionals who understand the complexities of business closure.
At Transworld Business Advisors, we specialize in helping business owners through every stage of the closing process. Whether you're in the early stages of closing or managing the aftermath, our team of local experts will guide you through the critical steps of liquidating assets and handling financial obligations. Let us ensure your closure is handled as smoothly and efficiently as possible, allowing you to walk away with peace of mind. Contact us today for a FREE NO-OBLIGATION consultation.
