DEBT RESTRUCTURING FOR SMALL BUSINESSES

There is a huge difference between the net value after liquidation and the value of equipment within an ongoing business with a good lease and a good operator with a business plan.

The liquidation price below is the price the liquidator might get but then you have to take out moving, storage, and selling costs, and liquidators fee.
Net Liquidated value might be as little as $20,000


Values from the Dry Cleaning business:

Union Dry Cleaning Machine HL-840-k (2018):

• Base Price: $22,500
• Liquidation Price: $11,250
• Current Value within a New Operating Company with a Business Plan: $30,375

Fulton Gas Fired Steam Boiler FB-015-F (2011):

• Base Price: $8,000
• Liquidation Price: $4,000
• Current Value within a New Operating Company with a Business Plan: $10,800

Water Conditioner Waterite 760:

• Base Price: $1,750
• Liquidation Price: $875
• Current Value within a New Operating Company with a Business Plan: $2,362.50

Air Compressor Eagle:

• Base Price: $2,500
• Liquidation Price: $1,250
• Current Value within a New Operating Company with a Business Plan: $3,375

Vacuum Rema:

• Base Price: $1,200
• Liquidation Price: $600
• Current Value within a New Operating Company with a Business Plan: $1,620

Water Heater Rheem:

• Base Price: $600
• Liquidation Price: $300
• Current Value within a New Operating Company with a Business Plan: $810

Steam Spotting Table Unipress SST:

• Base Price: $1,400
• Liquidation Price: $700
• Current Value within a New Operating Company with a Business Plan: $1,890

Utility All-Purpose Press Unipress 42LX:

• Base Price: $2,800
• Liquidation Price: $1,400
• Current Value within a New Operating Company with a Business Plan: $3,780

Utility Legger Press Unipress 46x:

• Base Price: $2,600
• Liquidation Price: $1,300
• Current Value within a New Operating Company with a Business Plan: $3,510

Air Steam Form-Finisher Unipress ASF:

• Base Price: $3,000
• Liquidation Price: $1,500
• Current Value within a New Operating Company with a Business Plan: $4,050

3 Part Puffer Unipress P1-3:

• Base Price: $1,500
• Liquidation Price: $750
• Current Value within a New Operating Company with a Business Plan: $2,025

Single Puffer Unipress P1-1:

• Base Price: $800
• Liquidation Price: $400
• Current Value within a New Operating Company with a Business Plan: $1,080

Washer LG (2 units):

• Base Price: $1,000 (for both)
• Liquidation Price: $500 (for both)
• Current Value within a New Operating Company with a Business Plan: $1,350 (for both)

Dryer LG:

• Base Price: $600
• Liquidation Price: $300
• Current Value within a New Operating Company with a Business Plan: $810

Sewing Machine (industrial) Juki DDD-555-4:

• Base Price: $1,200
• Liquidation Price: $600
• Current Value within a New Operating Company with a Business Plan: $1,620

Overlooker (industrial) Juki Mo-2512:

• Base Price: $1,100
• Liquidation Price: $550
• Current Value within a New Operating Company with a Business Plan: $1,485

Blind Stitches (industrial) BENZ 816:

• Base Price: $900
• Liquidation Price: $450
• Current Value within a New Operating Company with a Business Plan: $1,215

38ft Double Conveyer:

• Base Price: $2,500
• Liquidation Price: $1,250
• Current Value within a New Operating Company with a Business Plan: $3,375

3 Roll Bagger:

• Base Price: $350
• Liquidation Price: $175
• Current Value within a New Operating Company with a Business Plan: $472.50

Slick Rail System:

• Base Price: $1,400
• Liquidation Price: $700
• Current Value within a New Operating Company with a Business Plan: $1,890

Front Counter & Tagging Counter:

• Base Price: $800
• Liquidation Price: $400
• Current Value within a New Operating Company with a Business Plan: $1,080

Computer & Printer:

• Base Price: $1,000
• Liquidation Price: $500
• Current Value within a New Operating Company with a Business Plan: $1,350

Scale Cart:

• Base Price: $250
• Liquidation Price: $125
• Current Value within a New Operating Company with a Business Plan: $337.50

Laundry Carts (7 units):

• Base Price: $700 (for all)
• Liquidation Price: $350 (for all)
• Current Value within a New Operating Company with a Business Plan: $945 (for all)

Refrigerator:

• Base Price: $400
• Liquidation Price: $200
• Current Value within a New Operating Company with a Business Plan: $540

Totals:

• Total Base Price: $63,850
• Total Liquidation Price: $31,925
• Total Current Value within a New Operating Company with a Business Plan: $86,197.50


People need to keep in mind how little is recovered in liquidation so deals should be negotiated knowing that liquidation really is not in anyone’s interest.

Debt restructuring is the process by which a debtor (usually a small business) and its creditors renegotiate the terms of the debt. The principal amount outstanding may be lowered, the repayment time may be extended, or the interest rate may be changed. Making debt obligations more bearable is the aim of debt restructuring, which aids the debtor in regaining financial stability.


An appraisal for assets generally runs from $399 to $799

877 355 8004 - Phone or Text now
pindotca@gmail.com
Eric Jordan CPPA

RELATED LINKS / AND WHAT THEY MEAN:

FIVE million dollar Specialty Remanufacturing business for sale / Western Canada returning more than 15% a year
Email eric@pin.ca
The valuator will explain the valuation report.

Local Business for sale Saskatoon / This will show you what a landing page would look if you decided to use the biggest marketing company in the world “GOOGLE” to find your buyer after you found an accurate value.

Business Expropriation / If you are facing expropriation there are some facts you need to consider.

Fair Market Value / Many people don’t know the legal meaning of “fair market value” in Canada and other countries. Canada has the most accurate definition.

Business for sale Platform since 1998 / This is a record of what has been happening on the Pin.Ca website since 1998. Interesting 26 years.

Fraud and Major flaws you must avoid / The Old Boys Club from 1975 would prefer a MONOPOLY. Good for them but not for Business Stakeholders.