what does it mean to liquidate a company 
to liquidate a company is when it sells off all of the assets on its balance sheet to pay off debts and obligations in order to dissolve the company it is the process of winding down a company s affairs and distributing any remaining assets to the company s creditors and shareholders if anything remains liquidation may be the best option for a company if it is no longer able to meet its financial obligations if it has a large amount of debt that cannot be paid off or if it is insolvent it may also be the best option if the business is no longer profitable and there are no prospects for turning it around as through a chapter 7 bankruptcy proceeding 