Nothing lasts for ever! Business is no exception.
In my experience I have seen several times situation when business is grinding to a halt. Owner is left with a decision: liquidate or sell?
At first liquidation seems to be the logical choice, but in some circumstances not so. Especially if there are Tax debts or other liability that pass along to the director or the owner of a company even if you liquidate, depends on the legal system.
Selling such a company is another impossible task. Since who would want to buy a company with no profit? Well fortunately not always be the case.
I have been in such a situation once myself. When a friend of mine was trying to sell a company with assets but even bigger liabilities he could not cope with. We made an agreement and I bought the company for a symbolic 1 EURO, the year was 2008.
In my opinion it was a good deal since i got remaining assets of the company, client base and company's
know how that came along.
Few years latter I managed to sell the same company with a profit, not to mention earn myself a living during this period.
It was relativity simple since I managed to refinance necessarily assets and sell the rest. I calculated risks involved and from the very beginning I knew what has to be done. This show`s how a different point of view can have a completely different result in the same situation.
Unlike me there are people who are willing to take far more grater risks then I was willing to take. It is very common, especially in big corporate business that something is bought for nothing and Vice Versa
Question:
Do we need such big risk takers who are ready to make something out of nothing ?
Would your struggling business be ready to pay to attract such high risk takers ?
Personal experience also.
Selling vs Liquidation
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