Whether due to voluntary situations (owner retirement and/or exit strategy) or involuntary situations (financially distressed companies), liquidations is often an unpleasant and painful option for business owners. Regardless of the reasons, it is critical that the liquidating business understands how best to come to a net orderly liquidation value and, in the case of self-liquidation, that the business craft a phased liquidation process that will create the optimal environment for maximum gain.
JV LAW GROUP can offer insight into determining liquidation value and some suggestions for a markdown program for small business dissolution.
Closing a business involves more than closing the doors — no matter its size. If business owners simply walk away, they can be exposed to lawsuits, loss of personal and business reputations, and unnecessary fees.
Remember, it can take months to wind down a business properly. You need a closing plan that will offer the most protection possible to your personal assets, your credit, and your reputation in the community — and to those of your spouse, cosigners, and lenders. If you simply close down and let the pieces fall where they may, you could end up haunted by unnecessary headaches, lawsuits, and debts for years.
A proper shut-down process will give your creditors and customers clear notice of your business’s closure, which is an important step toward limiting the amount of time you may be subjected to lawsuits. The order in which you notify people of your intention to close your business can greatly affect your ability to make the most of your last weeks or months in business. The order of notifications also depend on whether you need to sell inventory, keep employees on, continue buying supplies, and so on.
Additionally, a closing down plan will give you a timeline for completing activities and a checklist of your legal requirements.
A formal business transition plan puts the goals, priorities and strategies in place for a successful transition. Without a clearly defined plan, business owners are leaving their personal and financial futures to chance. JV LAW GROUP can help you with his process. Please contact JV LAW GROUP at 714-752-3270 or via email info@jvlawgroup.com
