As you can imagine, when clients come to you for financial assistance they want to know how much it’s all going to cost before they sign up. And that’s where we can help with our fixed-price liquidation.
We’re the first local insolvency practice to offer such a service—yet another example of how we do things differently to more traditional insolvency practices. But it’s by no means an easy thing to offer. There are so many variables to consider—complexities with selling assets, debtor collection disputes, legal action and recovery proceedings, and so on.
The cost will also vary vary greatly depending on:
• the size of the company
• the assets it owns
• the industry it operates in
• the number of offices it has
• the number and spread of secured creditors, unsecured creditors and employees.
Still, with a discovery meeting to establish what position the company is in, we can provide a realistic quote on the costs involved in handling the matter. (Want to know more? Here’s a video that explains how we can help both you and your client .)
That being said, your client may well come to you saying they’ve found a cheaper quote for the liquidation. We’re not a discount insolvency practice—we’ve invested heavily in people and technology so we can offer a premium service at a competitive price. And like most things in life, you get what you pay for.
So what do you tell your client?
You should begin by asking them if they really want to skimp on something as important as a Liquidation. Ask whether they’d be happy going overseas to a low-cost medical practitioner instead of a specialist who’s spent their life gaining the skills to help them.
But, if your client gets a ridiculously low price, or advice to do something that sounds dodgy, you should tell them it sounds too good to be true and that they should be wary. Explain that the fixed fee for the Liquidation isn’t always clearly explained to the Director, and may well be a fix fee for a director’s contribution towards the Liquidation costs. You may even want to direct them to our “3 Things to Check Before Choosing an Insolvency Advisor” blog post that explains how to ensure you’re dealing with a qualified insolvency practitioner.
Just be prepared for the fact that some people are price-sensitive, and will always go with the lowest price.
Rest assured, we’ll always provide both you and your client with qualified and independent insolvency advice. We’ll discuss the specific situation of their company, and discuss all the possible solutions. We see Liquidation as the last resort, and we’ll explore all the options before making the decision to Liquidate. (Unlike some liquidations, who only recommend a Liquidation because it’s in their financial interest to get the job.)
Liquidating a Company is rarely a straightforward process. But for basic liquidations we can give you a fixed-price contribution liquidation so you can assure the Directors they won’t be overcharged. So next time you need a quote for a Liquidation, don’t hesitate to get in touch with us.