Liquidating a company is not something any business owner looks forward to and we know it can be stressful when you come into difficulties.
But did you know there are a number of things you can do to make sure the liquidation process is successful and that you are on the best possible footing for moving on?
While liquidation is often thought of as a last resort, with the right support it can also be a real boost to a business in difficulties.
We’ve put together a handy guide to help you understand the process and what you can do to avoid stress and extra costs.
How to get the liquidation process started
1. Make sure liquidation is right for you and your company
It might sound obvious, but it is important to be sure that liquidation is the right avenue for your company.
The procedure follows a number of steps so it is important to know that it’s the best option before you start.
At Financial Discuss, we know directors considering liquidation want it dealt with swiftly and that’s why we devise the best possible action plan for you as quickly as possible.
Every qualified liquidator has a duty of care so you can talk to us safe in the knowledge that we will do what’s best for your business.
2. Prepare the records and information your liquidator will need in advance
While the details required can vary for each company, there are a few things that we commonly ask for.
We would advise you to prepare a list of creditors along with their full address and contact details — trust us, it will make your life easier further down the line!
You should also collate a list of any company assets for valuation and have on hand a back-up of your books and any employee records.
Providing this information early on can help to prevent delays later in the process.
Making choices once the liquidation ball is rolling:
1. Buying your company assets
It’s a matter of choice, but once your creditors have been told what’s happening, you can buy your company assets if you want to.
Any un-sold assets will then be put up for auction once the company is in liquidation.
If any of your creditors gets in touch with you at this point, you should refer them to your agent.
2. Going through a mock liquidation process
Asking your agent to go through a mock liquidation before calling the final creditors’ meeting can be valuable.
It will help us to highlight potential problems when it happens for real and allows us to help you look at solutions to them before they occur.
How to conclude the process: relax
The creditor’s meeting: your last engagement as director
The creditors’ meeting is the point where the liquidation of your company is made official.
It is the last meeting you will have as the director of the company and usually creditors only attend if they have questions.
When the meeting closes, your company is in liquidation.
It can take a number of weeks to complete, but you can relax in the knowledge that we’ll see it through efficiently so that you can move on quickly.
We understand that you might appreciate some guidance which is more tailored to your particular circumstances, so do get in touch if you’d like to discuss your options. As always, we’d be only too happy to help.