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Michaels Global Trading helps businesses across North America as they liquidate their office furniture, IT equipment, construction equipment, and more!

How To Liquidate Your Company

All good things must come to an end. Liquidation is a way to make the most of your company’s closing. Liquidation helps salvage what’s left of a company so that creditors can be satisfied. It’s important to have liquidation specialists on hand to assist throughout the process. There are many steps to liquidation, all of which an Insolvency Practitioner can help navigate.

The first step when liquidating a business is to put the company’s status down on paper. What the outstanding amounts are, who are the creditors and what are they respectively owed? The first step to solving a problem is to quantify it. That makes it easier to tackle each element methodically.

An Insolvency Practitioner, also known as a Liquidator, then collects all the company’s assets. There may be an auction of these assets to generate enough capital to pay off creditors. An appraiser will evaluate the assumed value of all remaining assets, anticipating what their price at auction might be.

When liquidating a company, an Insolvency Practitioner will round up outstanding debts and figure out a payment plan. The highest priority debts will be paid off first, followed by other debts in order of urgency. The idea is to relieve pressure from the business owner and shareholders to fend off creditors, while ensuring the creditors receive their due.

There are many factors that could necessitate liquidation. The larger a business grows, the more moving parts are involved. If something goes awry in a business’s supply chain, such as a major customer or supplier going into formal insolvency, it will cause aftershocks in your own company. A significant dip in the market could also strain your business to the point it is no longer sustainable. Or, an unanticipated increase in competition could saturate the market and hit your revenue streams.

Liquidation is a positive, organized method for shuttering a business and satisfying all indebted parties. A liquidation order serves as a notice of dismissal to all of a company’s employees. An Insolvency Practitioner assumes control from the board of directors and makes impartial decisions about how to best handle financial matters. A business owner will try to persevere for as long as they can, but there are always factors beyond their control. An Insolvency Practitioner can take the reins from the owner’s hands in order to derive the best possible outcome for everyone involved.

Business liquidation is a multi-step process that affects your shareholders, board of directors, employees and creditors. When a business ends it’s necessary to itemize your expenses and approximate the value of what you already have. An Insolvency Practitioner will help you navigate the choppy waters, and arrive at a solution that satisfies everyone involved. It’s no fun to think about a business closing down, but it’s helpful to know there is support to make the process as smooth as possible.Various companies maintaining high level of professionalism and quality services provide relocation, removal and liquidation services.

Brainhunter Systems Ltd

BEST IN THE INDUSTRY! That’s how we would describe Michaels Global Trading. They took all the headaches for our office move, decommissioning office cubicle, and did everything at a great price. They planned everything ahead of time and were on time to finish the job. Marlon, Mario, and team were extremely professional. They were fast to respond, fair in prices, and extremely service oriented. We would recommend them to companies who are planning an office move or decommissioning office furniture or equipment. – Brainhunter Systems Ltd.

Gameloft Toronto

We engaged Michaels Global Trading to remove and dispose a large quantity of office furniture during renovations. Marlon and his team were professional, efficient and made our jobs much easier. It was nice not having to deal with all those desks ourselves!

FAQ

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What are liquidation items?

Liquidation items can be anything that can be sold from a business to generate cash flow. Examples would be furniture, computers, machinery, vehicles, fixtures etc.

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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.

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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.

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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.

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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.

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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.

FAQ

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