Guide: Exit Your Business | Strategy Eleven

Liquidate a Business

One option for exiting your business is by way of liquidation. Liquidation refers to selling off assets or securities in order to generate cash revenue. The more liquid an item is, the faster you can collect cash for it. Items like fine art, homes, or a specialty collectors item are generally liquid as it takes a certain kind of buyer with typically a larger amount of money to make a purchase.

If you think you would like to sell your assets and/or securities in order to close your business, we suggest you ask yourself these questions first:

  • Would there be an advantage with selling off the business as a whole (including assets & securities) rather than selling things individually over-time?

  • What kind of market would give me top dollar for my assets/securities? 

  • Should I consider another exit strategy for my business?

  • Out of all of my businesses assets/securities, what is liquid and what is not liquid?

  • Do I actually know what my business, assets and securities are worth? 

Frequently Asked Questions

Do you have questions about exiting your business? You should consider checking out our Resource Navigator. It houses the contact information of 400 of our most helpful partners from across the state who provide free to low-cost assistance to Iowa entrepreneurs and small business owners.

Q: Should I liquidate my business?

A: Consult with a tax or legal advisor for best practices and suggestions.

Q: Is my business in need of liquidating?

A: This depends entirely on your situation. If you are in need of cash to pay off existing lenders, then perhaps liquidating some or all of your business would be a wise business decision. 

Q: I need cash, is liquidating my business a good way to do that?

A: Absolutely. Even if you don’t want to close down your business entirely, liquidating some of your assets can be a very fast way to get your hands on capital to re-invest.

 

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NOTICE: The information included on this website is to be used only as a guide. It is not intended to cover all provisions of the law or every taxpayer's specific circumstances.

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