What does liquidating mean

A business owner may split items among several liquidators to maximize revenue from the liquidation of each item.

For example, the SBA reports that restaurant equipment that is sold out of a restaurant brings 40 percent more than the same equipment that has been removed from the restaurant and offered for sale in a a liquidation center.

For example, a new, large-cap fund may not fit the needs of the shareholders whose liquidated fund was originally small-cap oriented.

To liquidate a fund, the fund company may choose to sell the fund's assets outright if there isn't a well-fitting fund to merge into, and can then distribute sales proceeds to fund shareholders.

Fund companies often create a family of funds that each have their own investment objectives and portfolio strategies to meet various investor demands.

A written inventory listing each item, including a photograph, a written description and an asking price provides a business record of the sale for legal and tax purposes.

As an alternative, it can sell its entire inventory to a liquidator, who will pay a lower price for the products but will take possession of them and pay for them immediately.

From a buyer's point of view, an inventory liquidation sale can provide a valuable opportunity to purchase goods at rock-bottom prices.

According to the Small Business Administration, preparing the assets for sale is the first step toward liquidation.

A business should donate or discard items that are past their prime and sell only items that are in good, clean, serviceable condition.

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