Characteristics of a Good Liquidation Company
Deciding to put your business into voluntary liquidation is a difficult step for anyone to take. Such a decision will undoubtedly only come after a lot of soul searching and once all other alternatives have been explored. In such circumstances, it is likely that feelings will be running high. Choosing a liquidator that will act efficiently, professionally and sensitively is therefore absolutely essential; however it can be difficult to know where to start. We have put together a few ideas to help you focus on the most important issues when making this difficult choice.
Liquidation is a complex and sensitive process, so it should only be handled by expert professionals. The level of expertise required cannot be achieved overnight, so it is important that you choose an experienced company. Beware of mistaking longevity of operation with experience however; this is a very easy error to make. Companies come in all shapes and sizes, so make sure that the company you choose is not just experienced in liquidations, but is experienced in liquidations of similar companies to yours. That way you can be confident that they will know how to handle your case in everyone’s best interests and in a way that minimises the level of stress you will experience.
Experience is valuable, but it is not enough on its own. Requirements and regulations can change over time, so it is important that liquidators supplement their experience with ongoing training. A good organisation will always be looking to maintain and develop the skills of its employees. Ask potential liquidators how they ensure that their skills are always at the highest level possible and expect to see evidence to back up any claims they make.
Different liquidators specialise in different types of business or industry. Choosing a liquidator that has an intimate knowledge of your business area will increase the chances of everything running smoothly, which can only be to everybody’s benefit.
Over time a good liquidator will earn a reputation for the quality of the work they do and this can often be the best way to judge a company. If you are not personally familiar with the reputations of your potential liquidators, talk to business contacts who have had experience in this area. You can also check with ASIC to see if any complaints have been made against any of the companies that you are looking at.
Two of the key attributes you are looking for in a liquidator are efficiency and sensitivity to a difficult situation. You have the opportunity to get a feel for how well potential liquidators will perform in this area before you make any commitment. When you make enquiries, take note of how they are dealt with. A professional and courteous approach at this stage does not guarantee the same during the liquidation itself, but it is a good indicator. Certainly if you are unhappy with the treatment you receive when choosing your liquidator, it is unlikely to improve once your business has been secured.