Solvent (Silent) Liquidation
The ultimate path ("the end") can also be a solution. We liquidate companies for you that are no longer (economically) viable; while preserving as much of the economic residual substance as possible.
A solvent liquidation is more than just a simple "We are discontinuing a division": It is a strategic decision that should be made jointly by the entrepreneur/shareholder, management, and advisors on a well-founded basis. Its implementation requires a clean separation of structures, contracts, employees, and IT systems, etc.
When is a solvent liquidation sensible?
A solvent liquidation makes sense when the business model no longer has a viable future, shareholders do not want to continue the company (e.g., in the case of generational change or investor withdrawal), individual group or special purpose entities are no longer needed, or the liquidation value of the assets exceeds the going concern value.
The advantage compared to insolvency: shareholders determine the pace and order themselves – without a court-appointed administrator, without time pressure, and without public announcement.
How does a solvent liquidation proceed?
- Planning: Liquidation balance sheet and winding-up plan; verification whether the assets suffice to fully satisfy creditors. Corporate law implementation: shareholder resolution, commercial register registration, appointment of liquidators.
- Creditor satisfaction and blocking year: All known creditors are satisfied. The remaining assets may only be distributed to shareholders after one year has passed.
- Utilization of assets: Orderly sale of assets (real estate, machinery, receivables, intangible assets) – individually or as a business unit.
- Completion: Final accounting, asset distribution, deletion from the commercial register.
What special challenges exist in solvent liquidation?
- Employees: Employment relationships must be actively terminated – including social plans, severance payments, and transfer measures.
- Contracts: Rental, leasing, and supply contracts do not automatically expire. Terminations and cancellation agreements must be actively negotiated.
- Tax optimization: The liquidation has tax consequences (final taxation, taxation of distributions). Early planning can significantly increase the net proceeds.
- Solvency: The company must remain solvent throughout the entire liquidation. In case of impending insolvency, a timely switch to insolvency proceedings must be initiated.
Why horizon-re for solvent liquidation?
horizon-re supports solvent liquidations from a single source: legally, economically, fiscally, and operationally. The recommendation for liquidation is made only if it is truly the best option – alternatively, it is clearly communicated if restructuring or a transfer solution promises more value.
As experienced insolvency advisors and administrators, the team can seamlessly transition to a court procedure if necessary