👉 The process of liquidating a business is when a company sells or transfers all of its assets, whether tangible or intangible, to one or more investors in exchange for cash. This typically occurs before the end of the current fiscal year and prior to the filing of the annual report on Form 10-K with the Securities and Exchange Commission (SEC). The liquidation process aims to maximize shareholder value by selling off assets that are no longer required or profitable, while also ensuring compliance with regulatory requirements.
