With the UK on the brink of recession and having just emerged from a global pandemic, it’s a tough time for businesses. As the economy struggles, many owners face a difficult question: should I liquidate my company?
As an owner of a struggling business, knowing when it’s time to call it quits is extremely hard. You have to weigh up the hopes and dreams you had for your business against your current financial situation.
If you’re struggling with this tough choice, we’ve put together a list of questions to help you decide what’s right for you.
Guide download: Should I Iiquidate my company?
Making big decisions about the future of your business can be extremely hard. The best thing you can do is speak to an expert. At Scott Bailey, we have a wealth of experience helping business owners navigate tricky situations. Whether you decide to liquidate your business or keep it open, our expert business solicitors will help you achieve the best possible outcome. To get started, view our restructuring & insolvency services or get in touch today.
What is liquidation?
In short, when a company is liquidated, it stops doing business and employing people and its assets are sold to pay off any outstanding company debt. Any money remaining once all debts have been paid can be split between the company shareholders.
As part of the liquidation process, the company will be removed from the companies register at Companies House, at which point it will cease to exist.
Liquidation can be voluntary (decided by the directors and shareholders) or compulsory.