How to Find Good Liquidators |
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By: Michael Contaro Posted: 2006-10-29 02:43:47 |
| Business have two directions—profit or bankruptcy. Once a corporate organization sustained its needs and produce profits despite of inconsistencies of market conditions, there is a no chance that they will declare insolvency, or the condition wherein their assets no longer exceeds their liability. However, if a corporate organization experienced difficulties in their business operation and it cannot adapt anymore to the drastic changes in market conditions, there is a higher chance that they will declare insolvency once the problem is not immediately addressed.When a corporate organization declares bankruptcy or the inability to pay their debtors due to financial incapacity, liquidation comes into place. It is the process of converting the corporate organization’s real assets (such as real estate properties, in most cases) into cash that will be used in response to the declaration of bankruptcy as a way of repaying their debtors.There are two types of liquidation—voluntary and compulsory. The former is done for several reasons. There are companies that elect to undergo liquidation even if their assets still exceeds their liabilities, if they believe that their business is experiencing a continuous fall down. By selling these assets early, they will be able to pay off their creditors and still distribute final dividends to its shareholders in case the business fell down. The latter, on the other hand, is the liquidation ordered by court. In most cases, creditors of a debt-stricken company files for compulsory liquidation in order to retrieve their investment from the company in the form of recovered cash from selling the company’s assets.The person legally in charge of the liquidation process is referred to as the liquidator. They are commonly certified public accountants (CPAs) that conducts the study on the statements of assets and liabilities of a debt-stricken company and determine if there is a need for a liquidation or not. If there is a need for an immediate liquidation of the company’s assets, they will sell these assets to interested buyers and distribute any revenue generated from selling the assets to the intended recipients.In case your company needs an immediate liquidation, how will you find these liquidators? You may check your business directory and look for firms composed of registered liquidators. You may request for a team of liquidators who will evaluate your company’s assets and liabilities and determine if there is really a need for the company to undergo liquidation. In the process, liquidators will be the one to handle things for a commission.Aside from your business directory, there are also liquidators over the Internet. All you have to do is to search for their sites and request for some free online evaluation about the status of your company. In most cases, it is advantageous to locate these liquidators over the Internet since most of them are locally-based. Therefore in cases of compulsory liquidation, your company will be able to comply with the applicable rules if you have locally-based liquidators who have knowledge with regards to such rules.Liquidators are not just liquidating your assets—they are liquidating your debts to save your company from bankruptcy. Use possible resources to immediately address your needs for a possible liquidation of your company’s assets. It is better to be early yet you are surviving than late yet you are already dying. Liquidators are just there, several numbers of your telephone or several clicks of your mouse away from you. |
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