Most business owners consider liquidation to be the option of last resort. The assets
are sold off, all debts repaid, and the remainder goes to the owner.
Expect to receive the lowest benefit of any of the exit options, as you will receive no
credit for customer relationships, reputation, employee knowledge, etc. Goodwill
and other intangible assets simply disappear.
In many cases, the proceeds from the sale of the assets won't cover the outstanding
liabilities, in which case a liquidation through bankruptcy may be the only
It may be that there are some business processes that are functioning well and can
continue as a going concern, in which case you may decide to execute an asset
sale on the parts of your business that are not generating cash flow but can be
sold off to generate cash.
This is a fairly simple and fast process and may not require as much work up front,
but is still a costly process - almost as high as selling the business.