Things to Consider before Liquidating your Business at Auction
For over 30 years, Rasmus Auctions has helped guide thousands of businesses through the process of liquidating their assets. It’s these years of experience that have helped us craft an auction system that is easy for both sellers and buyers.
When thinking about selling your business assets, here are some of the first things you’ll need to consider:
Why are you liquidating?
One of the first questions we will ask you is “Why are you liquidating?” This will help us determine the best structure and marketing for your auction. For example, a business owner that is voluntarily retiring will have much different needs and expectations than a business that must sell to satisfy debts.
When do you need to sell?
When you need to sell your business assets might be out of your control. For example, you may have a commercial lease that is ending, or the bank is requiring liquidation by a certain date. A tight timeline means an all-hands-on-deck mentality. A large auctioneer such as Rasmus will have the staff resources available to deploy right away to meet any tight timelines.
Do you want a full-service or a client-supervised approach?
Some sellers choose a full-service auction approach. With a full-service package, the auctioneer will take care of everything, from photos and product descriptions, to delivery and removal. When we handle the auction from start to finish, everything can be completed in just a few days. This plug & play solution is obviously more expensive, but is often chosen by clients who want the easiest solution and need to sell quickly.
Our most popular approach is the client-supervised auction. With this approach, a client prepares their own inventory and photos using an app then self-manages the removal. This approach can save the seller money in fees, and is only limited by the business owner’s own time availability.
Does my auctioneer have experience in my industry?
A restaurant auction is much different than an attorney’s office auction. It’s important to choose an auctioneer that has experience in your specific industry
- First, the auctioneer should bring their own audience of buyers to the table. The typical buyer for a restaurant auction is much different than an attorney’s office. Be sure to properly vet the auctioneer and ask them what kind of audience they can bring to your auction.
- Second, the logistics of an auction can be quite different depending on the assets. A commercial refrigerator is quite a different animal than a laptop. The right staging and the proper packing and shipping contractors can make all the difference.
Online, in-person, or hybrid?
Our proprietary auction software is built to excel in the online auction space, reaching the most amount of buyers all over the country. The vast majority of sellers today prefer an online-only auction. This is typically combined with a period of time for in-person buyer preview prior to the auction. However, we do still offer in-person and hybrid approaches for highly specific or complex auctions where an in-person element is still desired, such as for classic car collections.
For more information on how to sell your business at auction, visit our information for sellers.