Paul Favret On Company Liquidation
When one decides to shut down a business, one needs to go for company liquidation which is a legal affair. Liquidation refers to turning assets into cash. To liquidate a company means to turn all the assets into cash to either pay off the debts or fill out a bank account. Either way company liquidation works for the benefit of a company even though it comes with a sense of failure. If one takes liquidation as a negative event, one will be surprised to know that liquidation offers many advantages for business owners who have been cornered by the pressure of their existing business.
Paul Favret On Ways To Liquidate A Business
Paul Favret is a corporate expert who has worked with many businesses and helped them liquidate their assets. Paul says that sometimes liquidation becomes necessary because business owners find themselves in a corner with no way out. Instead of proceeding with the same business, it becomes essential to liquidate assets and go for a brand-new start. However, to liquidate an asset, one will need the assistance of an expert. Someone who knows the work and has handled it properly can offer assistance in this case. Here is a quick guideline to follow if anyone wants to liquidate assets.
Identification of assets is the first step towards asset liquidation. Because there are two different types of assets, one may get a little confused about which one can be liquidated. In a situation like this, only experts can assist business owners in identifying their assets. Usually, assets get divided into two categories, tangible assets, and intangible assets. Once one successfully divides all the business assets into these two categories, one can easily liquidate their assets. However, to liquidate assets, one needs to make detailed notes of the asset types, the condition of the assets, and the possessor of the asset. Without this report, liquidating assets will be difficult.
One might be confused about the tangible asset. What does tangible asset mean? Paul says that it is easy to find out about tangible assets. From office furniture to office vehicles, everything falls under tangible assets. Official real estate property also falls under tangible assets. For this reason, one can easily liquidate these and get cash in exchange.
It might be a little difficult to identify intangible assets without assistance from an expert. However, intangible asset comes in the form of contract, work in progress, client list, and intellectual property.
Finding Buyers For Business Assets
Paul says that it is not easy to find someone to buy business assets. One needs to do a lot of research to find someone who will buy the business assets and help in the company liquidation process. An expert will be able to help in finding the websites which perform auctions on asset liquidation. In case, someone is dealing in different types of business assets, finding a broker will be a wise idea says, Paul.
Paul Favret says that even though liquidation comes with a sense of failure, one cannot ignore the fact that it gives a chance to go for a fresh start. Therefore, it is not all bad.