When your company liquidators situation is in crisis and you decide to enter liquidation, it’s critical that you choose a licensed IP that’ll help you through the process. This means thoroughly researching costs, examining the different services and strategies they offer, and ensuring strategic alignment and compatibility for a smooth insolvency journey.

A liquidator will take over your business and sell off all assets, settling any debts, distributing the proceeds to creditors and dissolving the company in the end. During the process, you’ll be required to cooperate with the liquidator. This includes providing them with all information they request, meeting interview requests and allowing them access to the company’s books, records, employees and all other relevant documents.

Understanding Company Liquidators: What They Do and How to Choose One

Liquidation is a serious undertaking that’s usually only triggered when the directors of a company recognise that it’s insolvent, or its liabilities outweigh its assets. It’s important to remember that while this process recovers funds for creditors, it’s not always a lucrative option for the directors and shareholders of the business.

As a result, it’s crucial to work with the right liquidator who’ll make the most of your business’s assets. A good liquidator will make a point to identify and value all of your business’s assets in a way that maximizes their sale value, whilst also adhering to insolvency laws. This will ensure the sale proceeds from your assets are distributed to the correct parties according to an official hierarchy. This typically starts with secured creditors with a fixed charge, followed by preferential creditors like employees, and then unsecured creditors and finally shareholders.