To induce investors to sell, buyout prices are typically higher, and sometimes substantially higher, than the current market price.All shareholders are entitled to the buyout price, although in some cases an investor must physically submit the stock shares to receive payment.If the surrounding industry continues to thrive, equipment, inventories and even specialized facilities are in greater demand by competitors than if the entire industry fails.
Corporate stock as a whole can be liquidated if a company files bankruptcy, or if a company is bought out or taken over.
If you buy stocks on margin, your firm can liquidate your stocks if the equity in your account falls too much.
Divide any cash remaining after all debt is paid among the small business owners in proportion to their percentage of investment.
An attorney for more than 18 years, Jennifer Williams has served the Florida Judiciary as supervising attorney for research and drafting, and as appointed special master.
Also consider how specialized an asset is -- that is, how customized it is to the specific operations of the small business.
Customized assets, such as specialized manufacturing equipment or a specially outfitted facility, are more difficult to sell.As an individual, you can liquidate stock by selling it in your portfolio.If a company files a Chapter 7 liquidation bankruptcy, the company essentially vanishes from existence.Issue orders to sell all investments, and dispose of all fixed assets and remaining inventory at auction.Set a deadline on wait time for realization of all outstanding accounts receivable, and include the amounts received as cash. Pay off all tax debt first with the cash from the liquidated assets to avoid federal penalties and interest. If there is not enough cash to pay it all, consider paying each creditor a percentage of the amount owed.At the conclusion of the buyout process, the target company's stock is delisted.