Liquidation, Do you have a plan?

Mitch

CGF II, Certified Grumble Framer Level 2
Founding Member
Joined
Jan 1, 1997
Posts
383
Location
Lincoln, NE USA
My wife has decided to out live me and views any growth in the company as bad because she doesn't want to deal with selling or liquidating the business. I am thinking I need to have a plan written up for her (just in case she is right) to help her to best dispose of the assets. What are any of you doing in regards to liquidation?

Mitch
 
Find a business broker and try to sell you business instead of liquidating it.

That way when she remarries after your demise, your wife can live in comfort on a beach on St. Bart with a guy named Renaldo.
 
estate planning lawyer & accountant - they are the only ones with the up-to-date info on taxes, planning, legal issues, etc.

nice that you want to leave her in luxury though!
thumbsup.gif


Guess I should think about doing that for my husband #1 or would that be #2 if I outlive #1 :D


elaine
 
I don't know if this is possible (urban legend?), but I heard of a guy that, in case of the early demise of his boss, he had a contract with him to buy the business from the estate. Then to fund it, they took out a life insurance policy on the boss with the employee as the benificary. The employee paid the premium. The boss chose to do this so that the family, which was not involved in the business, would not have to be burdened.

I know that this is not a direct answer to your question, but it seems that there could many ways to deal with this.

I get the impression that any framing business is worth much more as a functioning business, rather than in pieces of equipment and inventory.

Maybe what you are looking for is more of an exit strategy, which includes longterm positioning and maximizing the worth of your asset - an open business.

Betty? Where are you? Have you read something about this lately?
 
I've recently talked this over with my children (young adults) and occasionally tell them what I think the business is worth. Even though my daughter will finish her business degree in May, she doesn't want the business and neither does my son. But I want it to be part of their inheritance. They are both members of my board of directors so they have some clue about what it should sell for; and knowing my daughter she will be like a dog with a bone when selling it and not let it go too cheaply.
 
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