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Home > Services > Consulting > Outsourced Finance & Accounting > Restructuring Services > Liquidation and Assignment Experts for Financially Distressed Technology Companies

Liquidation and Assignment Experts for Financially Distressed Technology Companies

Overview

Armanino is among Silicon Valley’s most experienced liquidation specialists for creditors, boards, investors and executive management of financially distressed technology companies. Liquidations include managed, out-of-court business terminations as well as an Assignment for Benefit of Creditors (“ABC”), a recognized liquidation path governed by state instead of federal bankruptcy law.

 

Managed liquidations are the preferred path

Managed liquidations are an option for distressed companies whose assets exceed or are approximately equal to their liabilities. These companies have the luxury of terminating their operations, selling assets, negotiating satisfactory settlements with secured and unsecured creditors, distributing any excess funds to investors, and winding down the company in an orderly fashion, all outside of bankruptcy court.

This is the fastest and least expensive approach to a business termination, and the most desirable option for investors and management. Armanino has extensive experience in both managing these liquidations as well as monetizing assets through our Asset Sale process.

Assignment for Benefit of Creditors (ABC): A proven business termination path for insolvent companies

An ABC is an established, state-sanctioned methodology and process for liquidating a company that is insolvent without undergoing the delays, costs, and constraints of bankruptcy. Companies electing an ABC as the strategy for termination select an Assignee and enter into an agreement whereby the Assignee assumes control over the company’s assets and liabilities, and then executes a complete liquidation by selling assets and satisfying creditors.

Armanino is expert at acting as the Assignee in an ABC. Management and investors are relieved of the cost and liability of liquidating the company themselves and results are typically achieved in less time than through a formal bankruptcy petition.

The Armanino difference—qualified and committed

We provide the operating manpower to ensure the company is properly managed through the entire liquidation process. Armanino can help assess available options, select the strategy for liquidating, identify potential assets that can be sold, negotiate with creditors, manage the mechanics of the asset sale and wind down, and make distributions to the creditors and shareholders. We work side-by-side with and complement insolvency and/or company counsel.

Because technology companies rarely include senior staff with liquidation and wind down expertise, it is prudent for distressed technology companies to retain Armanino. We have the necessary experience and are uniquely qualified to advise on liquidation options and to lead any scenario through to its full conclusion, which can often take from one to two years.