FAQ

What will happen to the assets of the company in a Creditors’ Voluntary Liquidation?

The assets are sold and the proceeds are spilt amongst the creditors. Creditors that had secured debt against the company are paid first leaving unsecured creditors sometimes with little or nothing.

What does a liquidation cost?

This depends on the type of assets being liquidated and the business model of the liquidator. Some liquidators like to perform on-site / auction sales from the sellers location or remove all assets to bring to their warehouse for processing. Normally with an on-site / auction sale the seller can expect to pay some marketing cost but will recoup that cost from the profits when the assets sell. If the assets are being removed the seller can expect to be paid immediately upon removal.

I have a problematic business loan, when should I engage a liquidator?

You should engage a liquidator as soon as possible. Selling some of your assets can be a great way to recoup some money to pay back any outstanding debts and avoid bankruptcy.

Is there an exact value to my assets?

The simplest answer is no. There are many factors that affect the value of your assets. Some examples would be market conditions, supply and demand, age, condition and location.

How much does an appraisal cost?

Every appraisal is different and has specific requirements. The cost is directly linked to the scope of work involved.

How long does an appraisal take?

That depends on several factors; first, how much equipment is being appraised. Appraising a large machinery shop with hundred’s of pieces will take significantly longer than appraising a small mom and pop business.

What can I expect in my appraisal report?

Majority of appraisal reports will have equipment values and a synopsis of how the appraiser came up with the values given.

Why do I need an appraisal?

Some commons reasons for an appraisal are mergers & acquisitions, business valuation, bankruptcy, financing & SBA lending, insurance, buy and sell agreements or partnership dissolutions.

What does Michaels Global Trading do?

We help businesses manage their surplus inventory and assets when downsizing or closing a location.

Do you provide free consultations?

Absolutely! We always provide a free, no obligation consultation at your convenience. The consultation involves discussing your unique needs and best avenues for liquidating surplus inventory and assets.

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