Define liquidating assets
In this case, there is very little time, so you have to assume an immediate shutdown of operations and sale of the assets.
A more likely situation may be that the business is not in duress and simply fetches a better price via liquidation rather than a future income or free cash flow based method, and then we are dealing with an orderly liquidation.
An orderly liquidation is definitely the more advantageous business valuation method if the business is not a going concern.
When is the time to consider the asset liquidation process?
• “Liquidation” into trust can end officers’ deferral period for severance payments under IRC 409A, depending on specific company circumstances. • As the winding up process progresses, the trust is readily administered on an as needed basis, versus retaining a corporate officer trying to move on with his/her life.
In the context of a managed liquidation it can be particularly effective as the final stage of a well planned wind down process.
Alternatively, the liquidating trust can be a backstop for a complete and relatively quick transfer of liquidation responsibilities to a third party trustee when a management team finds itself unable or unwilling to complete the liquidation effectively.
Your list should include a detailed description of each item, photograph, purchase information, condition, warranty certificates and repair records, if applicable.
If some items need painting, repair or general cleaning, take care of it at this stage to maximize sale prices.