Liquidation

Liquidation

If there is no market for your business (unlikely) you can opt for the Liquidation exit alternative. You sell off all your assets, collect outstanding receivables, pay creditors and keep what’s left.

For instance, if you own a factory which has grown exponentially in value since you bought it, the real estate itself may be worth considerable more than the business as a going concern. In this case, Liquidation would unlock that value.

However, in most cases, Liquidation should be considered a last resort. Something you do only if you cannot find a successor or if the sum of the parts is worth more than the whole.

Important CaveatChoosing whether this transition alternative, or a mix of the other 7 alternatives on our website, is right for you really depends on your (and your shareholders) individual circumstances. This important decision requires careful analysis, before deciding which alternative strategy suits your circumstance the best. Smart transition decisions.