If you are interested in retail liquidation in Toronto, then you may be thinking of the best way to liquidate your assets to maximize your return on investment. However, many neophytes may not know how best to go about this and may run into certain obstacles along the way.
As such, we have devised this quick guide so that you can have the knowledge needed to not only liquidate all of your corporate assets but also maximize their value on the open market to get the best possible return.
Consult Retail Liquidation Professionals Before You Begin
The first step is to find a reputable, bonded, and licensed company that specializes in retail liquidation in Toronto. If your liquidation involves insolvency on a formal level, then you will need to legally acquire the services of an insolvency practitioner for a liquidation plan to be drawn.
Moreover, your plan for liquidation will also need to be accepted by most of the creditors that remain before the actual liquidation process can legally commence. Unfortunately, some retailers move too hastily out of fear or ignorance, which can lead to harsh and swift litigation.
Therefore, we would recommend that you work hand-in-hand with a reputable retail liquidator to guide you through the process, as the sale of business assets without the necessary consent can cause serious legal problems down the line.
Create an Inventory as Soon as Possible
Before you begin disposing of your business assets, you should document each one. For instance, you can take high definition photos of each physical asset, which may include vehicles, equipment, buildings, furniture, and accessories.
In addition, you should record serial numbers if they are available, and write up a brief description of each item for posterity.
Then, once the actual liquidation process begins, you can easily track each asset, which will help ensure that nothing gets lost or stolen along the way. Some, if not all, of your creditors, may also expect a written confirmation of each asset before they are liquidated, and drawing up an inventory may also satisfy the tax authorities that are involved.
As for your intangible assets, you will also need to gauge their prospective worth. For instance, you should look into any permits, licenses, utility and provisional patents, client dossiers, and business trademarks. All of these may augment the value of your business and serve as assets that can be sold to interested third parties or companies that are in the same industry as yours.
Consider What to Dispose and What to Keep
While evaluating your assets, you may determine that some are not worth selling, such as items that may be in poor condition or defective. Hence, any items that you deem unsellable can be donated to GoodWill to give them a second life.
Donating any items with minimal monetary value can help you receive a tax break, so you will not only help the less fortunate but will also save some money in the process.
In regards to items that are on lease with an option to purchase, or assets that are on credit, you will need to decide if it makes more business sense to buy them completely and then resell them or to have them repossessed instead.
The general rule of thumb is that items that you have already made quite a few payments on would be best purchased outright so that you can resell them to recoup most of your expenses.
Evaluate the Value of Your Business Assets
The best way to gauge the liquidation value of your remaining assets is to check out many online auction websites and attend auctions that specialize in liquidation sales. As for any incorporeal assets, we would recommend that you contact interested parties directly in order to maximize your chances of success.
A full-service liquidation company in Toronto or a qualified appraiser can help your cause immensely if you have a plethora of assets that you need to liquidate post-haste.
Determine the Ideal Type of Sale
The final worth of your corporate assets will be largely determined by how they are sold, so you should perform the necessary research to ascertain the best way to sell them.
For instance, some businesses may benefit the most from a public auction, while others may yield greater returns by going down the internet sales route. In regards to everyday consumer items, many experts agree that “Closing Down Sales” are an excellent road to take.
Finally, an easy way to help increase the probability of success is to choose the ideal day and time for prospective buyers to purchase your assets and to advertise your liquidation sale well in advance to generate buzz and expand its reach.
The Michaels Global Trading Difference
In sum, there are many steps that you can take to help you liquidate your assets, while also getting the best possible return. If you would like to learn more about retail liquidation in Toronto or require the aid of a professional retail liquidator in the GTA, then please visit Michaels Global Trading at our new website.
Our services include online and on-site retailer liquidation and sales, obsolete, surplus, and discontinued inventory management, and advisory, consulting, and inventory monitoring services to help manage monolithic liquidation tasks.
We are also fully licensed and bonded and can be reached at 888-471-5066 if you would like to discuss your unique financial situation in confidence with a customer care representative. Or, you can request a free, no-obligation quote for peace of mind.