• Home
  • About
  • Like to Become a Contributor?
    • Your Current Expert Panel
  • Need Support?

Commercial Property Made Easy


  • Start Here
  • Expert Comments
    • Property Insights
    • Legal Matters
    • Finance
    • Tax Depreciation
    • Accounting Strategies
    • Superannuation Tips
    • Due Diligence
    • Valuer’s Viewpoint
  • Commercial Property
    • Offices
    • Retail
    • Industrial
    • Residential vs Commercial
    • Baby Boomers
  • The Economy
    • Interest Rates
    • Using Debt
    • Global Scene
  • Opportunities
    • Investment Opportunity
    • Development Opportunity
    • Your Potential Exposure
  • Bonus
    • Training Material
    • Investment Objectives
    • Buying Criteria
    • Negotiating Tips
    • Property Management
    • Key Consultants
  • Like to Contribute?
    • The Current Expert Panel
    • Contributor’s Agreement

Liquidate Don’t Litigate

17 December, 2014 by Steve Enticott

Liquidate-2

IMAGINE A SITUATION where you, through no fault of your own, are faced with a major lawsuit because one of your contractor suppliers has let you down and has gone into bankruptcy.

Case Study

Let’s look at a case study:

You have a successful Pty Ltd Company that has a contract of supply with another company. The supply could be anything from construction, wholesale or services etc.

There is a non-performance component in your contract that can quickly escalate into company destroying amounts if non-performance occurs. You have also sub-contracted part of the required supply out to an external entity.

However, this sub-contracted entity has hugely let you down, leaving you suffering with the consequences, as they promised and couldn’t deliver.

Even worse, perhaps they delivered faulty goods and now you cannot fulfil the original contract and are subsequently being sued for it.

The company you own has taken years to generate goodwill; it is a successful business, and it is now facing ruin and the prospect of making loyal dependent staff redundant.

To add insult to injury, you also have the added headaches of costly and lengthy litigation processes, consequently impairing your ability to be able to run the business successfully, if at all.

Overcoming Litigation

At this point, you?should consider selling the parts of the business (get it valued) that operate profitably.

This will allow a new fresh entity to continue on in a new form and begin the fight with what is left over in the old entity; or place it in the independent receivership/liquidation process.

In all likelihood, this will be a win-win situation, as the creditors of the old company are likely to receive a significantly higher return than they would have received by dragging the business into ruin.

This is achieved by receiving a fair value for it through a sale prior to ruin.

Bottom Line: ‘Liquidate don’t litigate’ should be a major consideration when facing significant legal issues.

Enticott-bio2

Why not Share this Page?

  • Share
  • Facebook
  • Twitter
  • LinkedIn

Filed Under: *Expert Panel, Superannuation Tips Tagged With: 9-step formula, arranging your finance, Australia, Buying Criteria, chris lang, commercial property investing, commercial property investment, commercial real estate investing, commercial real estate investment, controlling the valuation, due diligence, final judgement, Investment Objectives, locking in your finance, maintaining and upgrading, Property Management, sifting and sorting opportunities

Why not join my 'Inner Circle' to ensure you don't miss the NEXT trend in Commercial Property?

We promise NEVER to share your details.

Trusted Consultants

Have you downloaded this free app?


How about a Masterclass ?

Like listening to a regular podcast?


PB-Patch

Featured Interviews on:

What we stand for

Hopefully, you will quickly realise that I'm NOT here to simply "push my own barrow".

Rather, everything here has been put together to provide you (as a serious Investor) with the very best insights into what you need to know ... in order for you to succeed with your Commercial property investing.

You see, the deeper your access is to all the key information and the more expert opinions you can learn from ... the more likely your ultimate financial success will be.

That said, you will discover everything you need right here – both readily available, and all in one place.

All the very best ... Chris.

Your Next Step

  Footer-2

Need an engaging speaker?



Are you in the process of planning your next Annual Conference?

Or maybe you have in mind one or more Training Workshops, for different parts of your team?

Either way, if you're looking for someone to help train you or your team on ... Commercial Property, Creative Marketing, Goal Setting or Negotiating ... Chris Lang can certainly fill that role for you.

Take a look at this short Video which will give you an idea as to the sort of training that's available.

Copyright © 2021 · Commercial Property Made Easy · All rights reserved.

Disclaimer      Privacy Policy

Copyright © 2021 · Metro Child Theme on Genesis Framework · WordPress · Log in