Owning a business is one of the most difficult things you can do in life, even if you have years of experience doing so. It doesn't get any easier when you have to deal with significant financial trouble and are considering bankruptcy. Today, we will explain the valuation process should you decide to file Chapter 11 bankruptcy for your business in Tampa, Florida.
It is important for your business to have a written valuation in place when filing for bankruptcy. The written valuation of your business helps makes it easier to negotiate with your company's creditors. It also helps put together a business financial restructuring plan. The most important part of business valuation is to determine how much money is available to your creditors, both unsecured and secured. It also shows how much might be available for the equity holders of the business.
You must also take into account the liquidation value of the company. This is the amount of money you could have left after the quick sale of assets. Most often, an auction firm will be used to determine the value of the assets if they are sold by the firm and if the assets are bought in bulk by a private buyer.
An external appraisal firm will be hired either by your company or the bankruptcy court to determine the fair market value of your business. The reason for this is that a company that goes through restructuring will have more value than one that has closed.
It's never easy to make the decision to file for bankruptcy protection as a business owner. Your entire livelihood and likely all you've ever known has been put into the business. But, if you want to rebound and return to the business world it's important to consider Chapter 11 bankruptcy for your business.