Do You Know What A Forced Liquidation Could Do to the Value of Your Business?
If liquidation is forced on a disabled business owner, or on the executor of a deceased business owner, it can quickly become public knowledge that there is pressure to dispose of the business, and the following results can be anticipated:
Sale of business assets at greatly reduced prices.
Elimination of the disabled business owner's or surviving family's primary source of income.
Sacrifice of any goodwill value that might have facilitated sale of the business as a going concern.
Difficulty in collecting accounts receivable.
Immediate demand by creditors for settlement of their claims.
Possible liquidation of other assets to pay business debts.
The liquidation value of a business is unpredictable, and may be substantially less than the value of the business as a going concern.