If you had to liquidate a business

[fastfredracing]

What do you think would be the most profitable, quickest , and most painless way?
My good friend Ken, lost his 3 year battle with lung cancer last Friday . He was one of the best body men around, and of course, his shop is filled with a lifetime accumulation of tools, equipment, cars, parts, , and memorabilia .
At the funeral , his wife hinted to me that she may need some help in figuring out how to get rid of everything . A few of us real close friends, are going to meet up there next weekend, and start the process .
I think , selling the cars outright will maximize profit, and then I would just auction off all the tools, and equipment .
One of the other guys keeps whispering in her ear, that she will take pennies on the dollar at auction and she should sell everything to people individually . My thought is that all the good stuff will get picked over quick by the vultures, and then she will have a ton of small items that will take years of craigslist ads, and having to relive the memories over , and over everytime someone comes to look. Not to mention, she is now a single mom, working full time, trying to keep everything together.
At the viewing, I could hear chatter about all his stuff, the vultures are already lining up . I know a few guys, whom I would like to murder , have already tried to position themselves to grab up a few of the cars. One guy lowballed Ken on his deathbed for a 52 Chevy . I am gonna punch that fkker in the face next time I see him. I really love this family, and wanna help to give them the best advice , and help them all I can .
The business was on their property, and I think she wants to sell, and move on, leave all the memories behind. Ultimately , it is her choice, and I know she had already talked with her husband about all this, but she is looking to a few of us for some help and advice .
We are all meeting there next weekend, to start the clean up . Gonna be a little painful

[dad911]

Put the cars on BAT?

If the business isn't saleable as a whole, auction off the parts. I agree, the good stuff will get picked over at sale(s) and might be better to leave to attract buyers to an auction.

IMHO better to get pennies on the dollar for the small stuff, than make a career out of selling it. Or bleeding with rent or storage fees.

[KFC911]

Sounds as if you've got a handle on it Fred....good luck! Sometimes maximizing $ verses time and "moving on" isn't what motivates some folks in similar situations.

[MBAtarga]

Make sure she understands not to sell off ANYTHING until you or another trusted individual agrees to the arrangement.

[berettafan]

agree with your take Fred.

the vultures came after my father in law's guns when he was in his last days battling cancer. Ugly, ugly people.

but hey, they have to live with what they did.

[Mo_Gearhead]

QUOTE: "What do you think would be the most profitable, quickest , and most painless way? "
____________________

RE: Quickest and most painless - an auction.

I have been attending auctions/estate sales for over 35 years. The KEY is finding a good auctioneer in your area that is well known and reputable. If they are those things; they will advertise the auction well, take many photographs of items in the sale and will do their best to get top dollar because they are paid on the total $ sales (commission).

At the end of the day, everything is sold/gone - and they write you (her) a check. Done!

Auctionzip.com

[stomachmonkey]

First may I offer my condolences.

Your strategy is 100% correct Fred.

There will be a seemingly never ending pile of smalls that will take forever to get rid of and offer a constant reminder of her loss.

[cashflyer]

I'm here just to agree with a couple of other posts.....

If she is selling the stuff herself, get a second opinion on all offers from a disinterested third party - to keep her from being swindled on items that she may have little real knowledge of their value.

OR

Auction: Starman Auctions - Welcome to the Frontpage!
If going the auction route, she needs to have everything evaluated and valued so that she knows a realistic expected result. And she needs to know all of the auction company fees up front, as they will take a sizable chunk of the proceeds.

[recycled sixtie]

Like Mo-Gearhead says find a good auctioneer in your area. I recently sold something at auction and was surprised how high their commission was. It was 35%!
Reminds me when my father died in the 60's my mother gave away many of the animals. I think that the auction is the best way to go. Might be best to compare commission rates between 2 or 3 different auctioneers. The difference saved could amount to big $$$ with a valuable estate.
Cheers, Guy

[wdfifteen]

Originally Posted by fastfredracing

I think , selling the cars outright will maximize profit, and then I would just auction off all the tools, and equipment .
One of the other guys keeps whispering in her ear, that she will take pennies on the dollar at auction and she should sell everything to people individually . My thought is that all the good stuff will get picked over quick by the vultures, and then she will have a ton of small items that will take years of craigslist ads, and having to relive the memories over , and over everytime someone comes to look. Not to mention, she is now a single mom, working full time, trying to keep everything together.

My condolences, and thank you for caring so much about your friend. The world needs more folks like you.
I think you should sell everything at an auction. The big stuff will attract buyers, who will be there when the tools ect. sell and probably raise the price on them. Selling the high value stuff off and leaving the small stuff to auction will guarantee a small crowd at the auction and she'll give the small stuff away. I agree that letting the vultures pick over the valuable stuff and leaving the dregs for her to dispose of on CL is a bad way to go. It doesn't sound like she'll have time to do that.

[Charles Freeborn]

Fastest is as said an auction. Create "box lots" (group or box of items) with one or two highly desirable items with other less desirable. If they want the good stuff they have to take some of the less good. Do not break the lots. Otherwise you'll end up with a long list of less valuable items to sell / give later. Consider donations - local trade school, etc.
Consider a separate auction of the vehicles done by an auctioneer that specializes in vintage or collectable cars.
Very sorry for your loss of a true friend. It sucks. You're a good guy to step in to help. Put together a team of friends to act as firewall, other wise the widow will be at the mercy of the vultures.

[sc_rufctr]

My condolences for your loss.

First things first. He's only just passed so I would advise her not to do anything right now. Just let her take some time to grieve and gather her thoughts.
Sell the cars individually but try to sell the business as a whole. Tools, everything included. That would be the least painful for her.

[nota]

why not try to save the biz
and sell it as a going biz totally all together

or hire a manager to work on a % of the proceeds
and give her an income

bits and pieces never = the whole value of a biz

[jhynesrockmtn]

Sorry about your friend and good on you for jumping in to help. If it were me, I'd pick the larger and/or more desirable items and if you are comfortable with values, put them on CL with a short viewing window. If unsure about car values or there are some collectibles, maybe the BAT route. The rest could be handled by an estate sale company in your area. I'd hesitate to have an auction/estate company handle all of it as they'll take their cut and she may end up with substantially less and it sounds like the family could use the money. Best of luck!

[wdfifteen]

Originally Posted by nota

bits and pieces never = the whole value of a biz

Not true. Bits and pieces can be worth a lot more than a going business.

[craigster59]

I buy at auctions all the time. Charles Freeborn is absolutely right. Box lots are the way to go, keeps the "cherry pickers" at bay. Bidding on multiple items also speeds up the auction process.

I'd also consider donating some of the less desireable items and take the tax writeoff for higher value than you can sell them for.

Condolences on your friend. Sorry you also have to deal with a-holes that are beginning to show their true colors.

[ckelly78z]

Originally Posted by Mo_Gearhead

QUOTE: "What do you think would be the most profitable, quickest , and most painless way? "
____________________

RE: Quickest and most painless - an auction.

I have been attending auctions/estate sales for over 35 years. The KEY is finding a good auctioneer in your area that is well known and reputable. If they are those things; they will advertise the auction well, take many photographs of items in the sale and will do their best to get top dollar because they are paid on the total $ sales (commission).

At the end of the day, everything is sold/gone - and they write you (her) a check. Done!

Auctionzip.com

Almost word for word what I was going to write. It's one thing if you are a car guy, and like to piddle around selling individual parts on ebay (as long as you can identify, and describe the parts), but it's another thing completely if you are the widow, with sad memories, a busy schedule, and little car knowledge.

If you can advertise the big items, (even the cars) for being at one place for an auction, I think she will be done with the headache in short order, and may get a little bit les money, but can heal a whole lot easier.

[Evans, Marv]

Can't add to the already great suggestions already given. However, I'd sit the widow down and explain the situation to her about the vultures and how she might fall prey to them to her disadvantage.

[intakexhaust]

Sorry for your loss and these are uncomfortable things to deal with.

I've seen this scenerio and been on both ends.

Profitable and quick isn't realistic. Get those terms out of your head, period. For those who've been to a complete stranger family auction, you know the absurd bargains that can be had, especially on a cold rainy day or lack of decent auctioneer. An estate with tangible stuff can lose it real fast. Too bad for the estate and thats just the facts. Huge risk.

Now if you're close to the family and wish to help, its going to take some time to maximize recovery. There's going to be emotions involved, so how or when to intervene or step back could be tricky. Even though there's a surviving spouse but is there an assigned executor and whats their story? They can legally get paid for their managing the estate.

Next, if you truly want to help and maximize the sale(s), make it a sincere business approach and with your expertise, knowing valuation and where to sell. Keep the arrangement in a business manner. If they're not rushed on time or crunched for money, I would make a seperate ebay account for this estate and dwindle it out. A bank account direct to them and they're responsible for fees and tax. For all your time, a pre-arranged percentage would be funneled to you. This can all done at one meeting, online accounts setup, etc.. You can start taking pics and making descriptions and get them posted. Hopefully within two weeks window, monies begin to fill the account. She could draw as needed supplement or transfer to other financial investments.

[greglepore]

Sorry for your loss, lost a friend and bodyguy to lung cancer earlier. Breathing thje dust and shizt for years takes its toll.
Advice above isound, a good estate atty would do the same. Finding a commercial auctioneer is key.