Wholesale Vs. Liquidating Your Business | Pros & Cons
Selling your business as one complete entity versus liquidating your business does not have to be tricky. From simple math to clear timelines it is easy to see which is more profitable. If you are a business owner with a successful company, selling your business wholesale is more profitable than liquidating your business.
The Whole Is Greater Than The Sum Of Its Parts
In the words of Aristotle, the value of your business as a whole is much greater than if you were to liquidate your company and sell it. A liquidated business can only sell its assets. A business that is sold as a complete and single entity has history, branding, and marketing that can all boost the profitability of the sale of a business.
When You Should Sell Your Business As A Whole
Selling your business as a whole should always be your first choice when you plan on closing your company and retiring. No matter what industry you work in you should first consider selling your business.
Even if a business broker might indicate you need to drop the price of your business, the sale of your company at a discount will still be more profitable than liquidating your company.
Challenges In Selling Your Business As A Whole
Selling your business is no easy task, that is why professional business brokers exist. We help you sell your business effectively.
Marketing Your Business For Sale
Marketing your business is difficult if you do it on your own. A business broker can do it for you and reach out to qualified buyers over email or through listings. A professional business broker has an effective marketing strategy and marketing network.
Finding The Right Buyers
Finding the right buyers for your company can be time-consuming. You could interview hundreds of interested candidates but the deal constantly seems to fall apart. What a business broker does is save you time by handpicking the qualified buyers from the larger pool of buyers. This way you do not spend unneeded amounts of time looking for interested buyers.
When Should You Liquidate Your Business?
There is a certain point you should liquidate your business. The truth is not all businesses can be sold. Below are a few reasons you should liquidate your business.
- A Business Broker Advises You To Liquidate Your Business
- Your Company Is Failing
- You’ve Declared Bankruptcy
- You Can’t Sell Your Business
- You Need Money Fast
- Your Industry Is Going To No Longer Exist
- Your Business Assets Skyrocket In Market Value (seldomly the case)
The above reasons are primary examples of why you would liquidate your business. At Synergy Business Brokers we do not work with liquidating businesses, but we do advise business owners with qualified businesses to sell their company wholesale so they can make a larger profit.
Challenges In Liquidating Your Business
There can be many challenges in selling the broken-down assets of your business. It is like having a garage sale of your materials and equipment. Make sure you are ready to invest a large amount of time selling the assets of your company.
Selling Used Items For Profit
Your business assets are used. Trying to sell them and turn a profit can be challenging. Other businesses usually won’t be willing to offer the full price for your assets since they could go to a supplier to get them. When you are trying to get full payments to pay off any business debts this can be a challenge.
Finding Buyers For Your Assets
For every asset you have, you will need to seek out an interested buyer. Finding those interested buyers can be difficult. If you are trying to liquidate parts of your business without closing it will be even more difficult to sell your assets.
Multiple Negotiations To Sell Assets
If it didn’t take a long time to find interested buyers, it will take a long time negotiating the sale of your assets, Since the assets are older or might have been used, many buyers will negotiate your assets. They will try to lower the cost of the assets. A few compromised sales aren’t bad, but every asset you will have to negotiate to see any return from liquidating your company.
Layoffs & Firing Employees
The most difficult part about liquidating a business is your employees. Your employees will feel the most hurt from you liquidating your company. From layoffs to unemployment, the challenges that employees will experience when you close your company are monumental.
Sell Your Business Instead Of Liquidating It
Contact Synergy Business Brokers to sell your business instead of liquidating it.
We provide a confidential consultation with no fee until your business is sold. Please speak with one of our Senior Brokers by filling out our quick online form or email [email protected]. We sell businesses in NY, NJ, CT, MA, PA, NH, RI, VT, ME, MD, VA, DC, DE, TX, LA, TN, VA, NC, SC, WV, KY, OH, IL, IN, MI, and MO. We look forward to speaking with you.