The frequency of commericial auctions in South Florida continues to make headlines.South Florida Business Journal reported in April that “[f]our…commercial properties in South Florida were recently scheduled for foreclosure auctions….”
While these statistics seem grim, according to most financial experts, going out of business is all too common in an economy that has only recently begun to recover from an international recession. In fact, pulling out of a business venture at the right time and developing a smart exit strategy may put you in a better position to start another business down the road.
If you are going out of business, the U.S. Small Business Administration recommends formulating a clear, organized plan and hiring professionals to help you get the most out of the process. Follow these steps as you prepare to sell your business assets.
Prepare an inventory:
Photoghraph and list the serial numbers and brief descriptions of all your items. “Your inventory will save you considerable time and expense as you move through the sale process,” according to the SBA.
Prepare your assets for sale:
Wash, clean and repair your equipment if necessary. Make sure you have applicable warranties. Be willing to give seriously damaged or outmoded inventory to charity.
Properly dispose of hazards:
If any of your equipment cannot be sold because of potential exposure to hazardous waste – “such as used chemicals and batteries” – contact the appropriate environmental authority to dispose of it properly.
Pay off leased items that might sell for a higher value:
If you have leased equipment with an option to purchase, consider paying it off if you can sell it for more than you owe.
Determine the value of your assets:
Work with experts and appraisers to help you evaluate your assets for a “liquidation sale.” This should enable you to recover as much as 20% of the purchase price of the property.
Choose the type of sale for your assets:
While there are many methods for liquidating your inventory, the SBA claims that “an auction works particularly well for some businesses” because it will enable you to “to take advantage of the aggregate bid process.”
Hire an Expert:
Plan the best place and time for your sale with the assistance of “[t]he right expert [who] can ensure that you get the highest possible dollar return,” for your assets. Experts can also help you with all documentation connected with the sale.
Need help with these steps? Consider hiring Lauro Actioneers. As experienced professionals, we offer state-of-the-art tools to deliver the best return on your business equipment.
