How to Handle Your Business Liquidation Auction

How to Handle Your Business Liquidation Auction

If you have decided to sell or close your business and have no one that wants to purchase it, your next best option is to hold a business liquidation auction. As the name indicates, the primary purpose of this auction is to turn your business assets into cash. Whether you are retiring or your business has fallen on hard times, your first step will be to contact your accountant (if applicable) and your lawyer. You will want to make sure all your affairs are in order and determine if there is any debt you need to cover before liquidating your business.

After meeting with your accountant and/or lawyer, your next task will be finding an auction house. While you could orchestrate your own auction, the expertise of a legitimate auction house will almost always guarantee a better crowd of buyers and a more successful liquidation of your assets. Schedule a professional appraisal and valuation of your items. Appraisers give objective valuations of your property, and if your items are appropriately described and priced, you are more likely to sell them. A full service auction house will provide appraisal services and an online auction house will go a step further to provide a listing and platform for people to bid on items – wherever they may be.

Business liquidation auctions are not uncommon, and there is no reason to hesitate holding one. You may feel embarrassed, especially if you had to close your business before you really wanted. However, your auction will bring your industry peers together, and you may make some new, valuable connections. Even if it’s an online auction, the interactivity through social media and the auction platform make digital introductions simple.