How to Find the Right Liquidator
Deciding that it is time to put your company into voluntary liquidation is a big step, but it still leaves you with one big choice to make — whom to appoint as liquidator. We have put together a few ideas to help you focus on the most important issues when making this tricky decision.
Look for experience
Liquidation is a complex and legally sensitive process. To handle it properly is extremely demanding and it is not something that can be learned overnight. Experience is therefore one of the most important attributes to look for in a liquidator. It is important however to make distinction between length of time in operation and relative experience. Liquidations vary enormously with differences in specific business types and situations. Quiz prospective liquidators on how their specific experience equips them to handle your case.
Impartiality is absolutely essential when it comes to appointing a liquidator. The liquidator must not only be completely independent of the business but he or she must also be seen to be independent, so you cannot afford to take any chances. Any possibility of personal bias or conflict of interest should prevent the appointment of a liquidator.
Listen to recommendations
Treat picking a liquidator as you would choosing any supplier or other company you work with as part of your business. One of the surest ways of getting good service is to take note of personal recommendation. Use contacts you have made during the course of your business operations and investigate any suggestions. Even if you don’t have personal recommendations to go on, reputation is a valuable guide. You can even check with ASIC to see if any complaints have been lodged against your proposed liquidators and ask for names and contact details of references.
You can learn a lot about the way a company operates before you ever start working with them. This is just as true of liquidators as it is for any supplier that you employ during the day to day running of a business. When you first make contact with a liquidator, take note not only of the information that they give you but also the manner with which they deal with you. Do they field your enquiries quickly and efficiently? Do they treat you with courtesy and respect? This is the very least that you are entitled to expect, but it isn’t something that you can take for granted. More importantly, it is also a very good indicator of how the company will operate once appointed. If your initial dealings are unsatisfactory, it is unlikely that things will improve when the liquidator is no longer trying to win the business.
Once you have established that liquidation is the right option, there is no benefit to be had from procrastination. The sooner that you appoint the liquidators, the sooner that the process can get under way and everyone concerned from creditors to directors can look forward to the next stage in their lives and careers. So, don’t give in to indecision. Look at your options, weigh them up and appoint your liquidators without delay.