Our Liquidators Explain 5 Priorities When Liquidating Your Toronto Company
As you go through the liquidation process, you will likely face several challenges. Ensure that you prepare for your next step after each phase in the process is complete. Pinpoint preparation involves understanding more about liquidation, and learning how to prioritize when taking on liquidation tasks. Our Toronto-based liquidators have many years of experience helping business owners as they enter liquidation. To help you move forward effectively, let’s explore your top 5 priorities when liquidating your company.
1. Saving Time
Business owners going through the liquidation process often find the requirements time-consuming. There is financial paperwork to complete. There are employment issues to resolve. There is also the process of managing any remaining business property and handing over keys and lease information to new building owners.
So, saving time during the liquidation process is a priority. Selling your equipment with a qualified auction house can help you save many hours. The auction house team will guide you regarding the equipment-sales process, and help you handle the paperwork involved in transferring systems over to new buyers.
2. Getting a Return on Investment
Liquidating a company can provide you with a significant income if you plan the process effectively. Many assume that liquidating their assets means losing money on equipment, such as printers, copiers, and office computers, but this doesn’t have to be the case. You can gain a return on investment as you liquidate your assets by choosing a qualification specialist to help sell your equipment.
Local auction houses hire equipment experts. They can harness the bidding process to help you get a high return on your equipment investment. So, make sure you partner with an auction company early within the process to plan all stages of the equipment sale effectively.
3. Minimizing Labour Costs
The main goal of liquidation is to help pay back some of the debt accrued from your business and to take a small profit when possible. Avoid spending too much on labour costs as you complete the liquidation. Your in-house staff likely don’t have significant experience in liquidation. They may also be less than motivated to carry out an effective job knowing they won’t continue to work with the firm.
Therefore, hire a third-party auction house to handle these tasks. Auction houses have the resources and expertise to handle the work with precision. If you select the auction house to sell your equipment, you can also further consolidate your expenditure.
4. Understanding the Phases of Liquidation
Perhaps the most important priority when you enter liquidation is to understand the phases involved in the process. Getting a clear picture of the road ahead will help you plan your work with Toronto liquidators effectively. For Ontario companies, there are 4 specific steps involved in the liquidation process. These steps include:
Submit the Required Documents
Ontario requires that you submit at least one article of dissolution as you enter liquidation. The documents that you are required to submit will depend on the type of business you own. For example, if you have shareholders, you will need to get their documented authorization and file Form 10. There will be a small fee associated with submitting your business liquidation documents.
Get Consent From the Ministry of Finance
When submitting your liquidation documents, you will also provide a cover letter to the office of the Ministry of Finance. Within the cover letter, you will include information such as your name and your business name. You should also provide details of your home address and your business address. As well, it may be beneficial to offer the Ministry of Finance your contact information if they require further business details.
Locate a Property Executor
The property executor oversees the various stages of the liquidation. The executor will handle the transfer of assets from the company to new owners, and may help guide you regarding lease agreements, rent documents, or mortgages tied to the business. While the executor will likely ask for company details, you will not be able to advise them. So, take the time to research the executor carefully if given the option.
Select a Qualified Auctioneer
When entering the liquidation process, you will have the option to select an auctioneer who can get the best value for assets held by the business. It’s critical to take the time to understand this process. Learn more about how auctioneers work, and choose a company that has decades of experience in the industry. Experienced companies will have undertaken the process many times before and helped business owners just like you overcome the challenges involved in business liquidation.
A qualification auctioneer can help you sell your equipment and also vet buyers to ensure they have the financing to complete the purchase. Auctioneers can also guide you so you receive the best return on investment, and they may offer storage for your equipment. Their storage services and guidance often help stem losses associated with commercial real estate holdings.
5. Planning for the Next Phase
One step that many business owners fail to consider when reviewing the liquidation process is the stage afterward. What happens when the liquidation is complete? Review whether you can continue to use your company name after liquidation. In some cases, the law prevents you from using a similar name for several years after liquidation. You might also consider your personal life as you enter liquidation.
Plan for any house moves or career changes now so that you can streamline the transition once you’ve finalized your liquidation papers. You may find that you’re quickly able to get back to work on a new challenge. As well, planning for this critical post-liquidation phase will help you get back to work as soon as possible.
Take the time to explore our expert liquidation services here at Michaels Global Trading. We have many years of experience as Toronto liquidators, and can minimize the costs and the time required for the entire process. If you are interested in liquidating your company in Toronto, call us now for a personalized consultation.