Business Liquidation: Choosing the Best Sale Method

Businesses looking to liquidate have a number of options for selling their assets. When you want to convert your business assets to cash, it’s a good idea to work with a liquidation expert to help find the method that will secure the highest possible return. Let’s take a look at the various liquidation sale methods:

Standard Auctions

This liquidation method is appropriate for most types of business assets. While a liquidation sale provides an immediate cash payout, a liquidation auction involves a fairly longer process, but can yield higher returns. A liquidation company helps manage the process from start to finish: from valuation, direct marketing, presenting items in an optimal location, to running the auction itself.

Negotiated Sales

Negotiated sales typically involve more specialized assets being sold to buyers in that industry. A liquidation company will help target your sale to your pool of industry buyers (your competitors, suppliers, landlord, etc.), and negotiate to achieve the best price. A restaurant owner, for example, may wish to sell their equipment to their landlord, who wants the equipment so they can rent the space for a higher rate. This type of sale may be used in conjunction with an auction, allowing large items to be sold first, and smaller items that didn’t perform as well in the sale to be auctioned off.

Sealed Bid Auctions

In sealed bid auctions, confidentiality is key. Buyers cannot view the bid history or the minimum bid required to win that auction. The winning bidder has submitted the most they are willing to pay in that auction, and has met the confidential minimum amount set by the seller. Sealed bid auctions are useful for sellers with specialized inventory and a small pool of buyers– this option helps mitigate the risk of selling in a more general auction.

Ideal Trading Corp is a liquidation company in New Jersey that offers services for businesses to convert their assets to cash. With extensive experience in commercial liquidation and auctioning, we provide outstanding results for business owners who are going out of business, facing bankruptcy and more. 973.343.6684 – Contact us today!