When a business enters liquidation, there are typically a number of assets that need to be sold by the appointed liquidator.
The assets of the company need to be given a realistic value and it is important to obtain an independent valuation in order to maintain a degree of separation during the formal insolvency process. The Valuation Team can provide this valuation and a report outlining the rationale. This will be audited by a third-party firm of Chartered Accountants.
Assets are sold for the benefit of creditors, but initially they need to be professionally valued by an independent expert. This applies whether the company has been placed into liquidation by its directors, via a Creditors’ Voluntary Liquidation, or it has been forced into compulsory liquidation by a creditor. The money generated from the sale is then distributed to creditor groups.
Hard assets, such as plant and machinery, land and buildings, and heavy equipment, are potentially valuable items that can be sold in a liquidation and important to the valuation process. They can generate significant sums if they’re wholly owned by the company, so it is important that the valuation applied to them is realistic.
Businesses operate with various asset types and the valuation and sale of intellectual property can also increase creditor returns. Even standard office equipment, such as computers and printers may be valuable, particularly if the business operates with a large IT department or is technology-based.
Stock, raw materials, work-in-progress, and fixtures and fittings, are other company assets that may need to be valued and sold in a company liquidation.
The Valuation Team offer a bespoke service for IPs with a price tariff based on the requirements of each particular insolvency. Please contact us for more information.
