Peter Rayney uses a practical case study to explain how owner-managers can liquidate their company.
Large numbers of owner-managers have experienced significant downturns in their businesses as a result of the Coronavirus pandemic (Covid-19).
Where they were already approaching their intended retirement, Covid-19 may have accelerated them giving up work. These decisions are easily made when faced with future uncertainty and the prospect of significant losses. Some may have been fortunate to secure a ‘distressed sale’ of the business, enabling the business to continue in some form.
In such cases, the owner-manager will rarely obtain a significant payment for the business goodwill but will have ensured the future employment of the workforce and avoid closure costs.
On the other hand, with perhaps the potential threat of insolvency looming, a number of owner-managers have simply opted to permanently cease
