How Do You Liquidate a Business?

Call us at 816.384.0095 or fill out this form to learn how we can help.

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Table of Contents:

What is a business liquidation auction?

Who would use a business liquidation auction? Is it only insolvent companies?

How do you liquidate a business?

Can I hold my business liquidation auction online?

Where can I get business liquidation advice?

Where can I get surplus equipment and business liquidation advice?

Is a business liquidation sale the same as a business liquidation auction?

What is a business liquidation auction?

A business liquidation auction, or online liquidation auction, is a highly efficient method of selling industry specific assets for market value to targeted buyers who are actively in the market and searching for those assets to buy. A business liquidation auction is done in a timely manner. Once you decide to liquidate your business, this can happen in a relatively short period of time.

You have multiple options when selling a business: 1) You can sell the business in its entirety as an ongoing concern including the business name, legal entity, domain name, clients or customers lists etc. (intellectual property). This may or may not include the sale of real estate owned by the owners or company. Another option, 2) You can sell the assets, but keep the intellectual property or real estate. We will be happy to discuss these options with you.

Who would use a business liquidation auction? Is it only insolvent or failing companies?

There are many reasons that businesses might use a business liquidation auction. A business liquidation auction is not only for companies that are insolvent or in financial distress. Some of the reasons for selling a business include retirement, the need to restructure the business for new revenue opportunities, desire to start a new business with the capital from the business being closed, partner restructuring,  the need to pay off secured debt, etc. Many people are surprised to hear that we also help companies re-structure by helping them to exit a line of business. This could include selling assets or inventory that is no longer being used as part of the core business.

How do you liquidate a business?

At Mayo Auction & Realty, we have a three-step process for your business liquidation:

• We evaluate the marketability of your assets and your specific needs.
• Our team of marketing experts will create a marketing plan specific to your business.
• We bring your assets to a marketplace of qualified buyers in a timely manner.

Can I hold my business liquidation auction online?

Not only can you, but you absolutely should have your business liquidation online. We have an industry-leading online liquidation auction platform. In addition to our own significant base of potential buyers, we are also part of Marknet Alliance, a network of 74 auction companies across the country. The Marknet Alliance network allows us to strengthen the nationwide marketing of our marketplace by partnering with these other successful auction companies, marketing your assets to qualified buyers accross a network of auction sites throughout the country.

Where can I get business liquidation advice?

If you are contemplating a business liquidation auction, give us a call. We will be glad to explain your options and walk you through the process. This may be the first and only time you have had to consider such a process. However we have worked with many individuals and families and are happy to share information from our experience and the experience of our clients. 

Where can I get business restructuring advice?

We regularly help companies who need to restructure or reinvent themselves. If you need to exit a line of business or just re-organize your operations, we can help with selling assets and property. Whether you need to generate cash to pay down debt or finance expansion in other areas. We are here to help.

Is a business liquidation sale the same as a business liquidation auction? 

No, they are two different methods of selling a business. A business liquidation auction can take place quickly, whereas a business liquidation sale takes place over a longer period of time. A business liquidation sale will usually result in the best equipment and assets being sold initially, and in many cases the remaining assets or inventory not being sold at all. This can create logistical challenges and typically results in a lesser overall return on the sale of the assets or inventory. 

The business liquidation auction is more efficient and maximizes the return on the sale. Everything is sold on a given day to a much larger pool of competing buyers. Quite simply, the business liquidation auction is a superior method to selling a business or business assets.

According to the Small Business Administration, “Public auctions are appropriate for most business types.” You want to hire an expert in business liquidation auctions to make sure you get top dollar for your assets.

If you have any questions on using a business liquidation auction, please call us at 816.384.0095 or fill out this form and we will be in touch.