Business Liquidation Frequently Asked Questions
Hire the right team for your job!
Liquidating a business is a very important and serious process. By putting Sherman Hostetter Auctioneers to work with your attorney, you will be making the best decision to market your business assets for top dollar. Below are a few of the most frequently asked questions. If your question is not answered, contact Sherman Hostetter Auctioneers for the solution to your situation.
Why do I need an Auctioneer?
Figuring the best way to sell a business can be a difficult task. Do you sell the business as a turnkey operation, by divisions or piecemeal? Will selling off part of the business or equipment reduce the value of the rest? Will I net less dollars and endure months or years of mental anguish in the process? How do I deal with creditors? Where do I find a buyer? Should I offer financing to the buyer or sell it for cash? These and other questions can prove to be overwhelming, but Sherman Hostetter Auctioneers can provide answers.
Why should I use Sherman Hostetter Auctioneers?
We are business liquidation and real estate specialists. Sherman Hostetter Auctioneers professional staff are trained in asset management, preparation and marketing to achieve the highest return possible for the seller. We have been serving the tri-state area as licensed real estate brokers, auctioneers and appraisers since 1955. We believe our years of experience, strong work ethic and continuing education provides results for you.
How can I determine the value of the assets in my business?
Through the liquidation of hundreds of businesses, Sherman Hostetter Auctioneers has gained a thorough working knowledge of the values of business assets. Our professional appraisal program, offered in addition to our auction services, are performed in compliance with the Uniform Standards of Professional Appraisal Practice and the Auction Marketing Institute. We have Graduate Personal Property Appraisers on our staff.
Why should I auction my real estate instead of listing with a broker?
How many times have you seen a property in your area sit on the market for months and even years? During that time, the expenses of taxes, insurance, utilities, mortgage payments, maintenance and, sad to say, vandalism can result in 10 to 25 percent of the value of the real estate spent in overhead per year. This nets the seller less money and can create mental stress in the long, drawn-out process. We realize time is money and a property is only fresh to the market once. The auction advantage capitalizes on that premise to stimulate demand and competition for your property. The auction will achieve top dollar for your real estate in the shortest time frame possible. Auctions produce results!
How will my business be advertised?
The auction method of marketing will focus attention on your business and real estate through a highly aggressive advertising campaign involving brochures, direct mail, signage, newspapers, fax, Times Tips, Talking House, the Internet and our website. Our professional staff will do all ad preparation and placement. Advertising is customarily concentrated into the 2 or 3 week period immediately prior to the auction.
How long will it take to conduct my auction?
The normal time frame for a business and/or real estate auction is 4-6 weeks from the signing of an auction agreement. You set the date, time, place and terms to suit your needs and goals. The condensed marketing time reduces or eliminates the holding costs associated with other forms of marketing. By auction, the seller quickly converts hard assets into cash to use for other financial opportunities or paying creditors.
Do I have to sell regardless of the price bid at the auction?
No! You can auction the business and/or real estate at absolute auction or with reserve. Absolute means the equipment or property will sell to the highest bid regardless of price. With reserve means the seller has the right to accept or reject any and all bids not reaching their pre-established minimum. Any reserve should be set at the lowest possible price at which that item will sell. A typical reserve item in the auction would be the real estate, a vehicle or other item of significant value.
How soon do I get paid from the auction?
We can turn the net proceeds from the personal property over to you the day of the auction or we can place them in our escrow account for payment in approximately 15 business days. Real estate deposits are placed in our escrow account until closing. We provide a settlement statement listing all expenses: (advertising, labor, commission, etc.), copies of bills, computerized list of registered bidders and a listing of each lot sold with the corresponding sales price. Closing on commercial and industrial property usually takes 60 to 90 days after the auction.
What will Sherman Hostetter Auctioneers provide?
Complete auction services. We provide a fully self-contained 18 foot mobile office with three computerized registration/cashier stations, auction specific software, auction truck with sound system (topper) and portable wireless PA system. Sherman Hostetter Auctioneers will also provide real estate sales agreements and all auction paperwork including registration, bid cards, receipts, etc. Our friendly professional staff and setup crew coordinate everything needed to ensure a successful auction including ad layout and placement, auction setup, arranging equipment, tagging, cataloging, hauling, soliciting a food stand, monitoring removal, and, if necessary, tents and portable rest rooms.
Why do I need an Attorney?
A professional attorney will explain the legal procedures involved in a business liquidation. Their guidance and work is indispensable in document preparation, timely filing of paperwork, calculating debt and proper settlement of the business.
Why do I need an Accountant?
Your accountant can provide past records, tax returns, depreciation schedules, asset information and tax consequences in your business liquidation. They can coordinate and condense all of the financial information for you to use in your decision-making process.
"Only by auction can you sell the real estate, vehicles, equipment, tools, inventory, stock, phone number, phone book advertising, company name and every other business asset in one day for fair market value!"
Auctions are our full-time passion. Professional help is only a phone call away!