What are the alternatives to corporate bankruptcy and liquidation? The secret trick of 'company sale' that lawyers don't actively tell you
When cash flow worsens and you think, 'It's impossible to keep the company going,' most business owners first go to a lawyer for advice.
The options presented there are, almost without exception, either 'corporate bankruptcy' or 'corporate liquidation'.
'Given your company's situation, there is no choice but to file for bankruptcy. The cost will be 1 million yen.'
Told this, many business owners despair, thinking, 'Since an expert says so, there must be no other way,' and scrape together their last remaining funds to proceed with bankruptcy proceedings.
However, is that really the only path?
Today, I will talk about the 'third option' that lawyers don't actively tell you, and the structure behind why they don't propose that method.
The limitations of the options presented by lawyers
Lawyers are 'legal experts.' Their job is to handle troubles in accordance with the rules of law.
When a company can no longer repay its debts, the only legal solutions are legal reorganizations such as 'bankruptcy' or 'civil rehabilitation.' If assets exceed liabilities, it becomes a 'voluntary liquidation'.
In other words, lawyers only have 'ways to end things using the law' in their toolkit.
They are neither business experts nor corporate turnaround professionals. The very idea that 'this company might still have value if another manager takes it over' or 'there might be a buyer who needs this loss-making corporation' does not occur to them.
That is why, no matter how bad the company's condition is, the suggestion 'Why don't you sell the company (M&A)?' almost never comes from their mouths.
The 'third option' other than bankruptcy and liquidation
So, what options are there other than forced termination by law (bankruptcy/liquidation)?
That is the method of selling the company as a whole (having it bought out) method.
You might think, 'No one would buy a loss-making company full of debt.' Certainly, if you go to a general M&A brokerage firm for advice, you will be turned away with, 'We cannot find buyers for companies with excess liabilities.'
However, there are companies in the world that specialize in buying only 'problematic corporations that other companies dislike.' We, Quest Ltd., are one of them.
Why can we buy 'problematic corporations'?
We have bought 317 'problematic corporations' over the past 10 years. Companies in any situation, such as those with deficits, excess liabilities, unsettled accounts, or tax arrears, are eligible for purchase.
Why can we do such a thing? It is because we are professionals who revitalize companies using the power of 'business,' not 'law'.
The corporations we acquire are incorporated into our unique network and business schemes, where they are repurposed as vessels to create new value. That is precisely why we can find 'value' in a company that is nothing but a 'liability' to you.
Things to consider before paying a lawyer 1 million yen
If you are currently being told by a lawyer to 'please prepare 1 million yen for bankruptcy costs,' please stop and think for a moment before paying that money.
If you choose bankruptcy, you will lose 1 million yen, lose your credit, and have to endure months of mental pressure.
However, if you choose the option of 'selling your company,' the situation is completely reversed.
A lawyer's word is not absolute. They are simply doing their job, and they do not necessarily possess 'every option' available to save your life.
Before you give up and think 'bankruptcy is the only way,' why not consult with us first?
From consultation to the change of ownership, you will not bear any costs whatsoever. Confidentiality is strictly maintained, and we will release you from the burden of management in as little as 7 days.
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