Corporate Undertaker

DEFINITION of 'Corporate Undertaker'

An informal term for liquidator. As the name implies, a corporate undertaker oversees the liquidation of an insolvent company. In other, more descriptive words, he or she is the figurative funeral director of a deceased company, settling all of the company's outstanding accounts. This can include making arrangements with creditors, selling company assets and anything else related to shutting down the company.

BREAKING DOWN 'Corporate Undertaker'

Before a company is forced to declare bankruptcy, these corporate undertakers suggest ways to return it to health. Suggestions can range from ways to cut costs to means of increasing production and efficiency. In some cases, a business can run into trouble because of issues faced by other companies it relies on, i.e., a key supplier or distributor. By addressing these concerns before they've reached a critical point, corporate undertakers may sometimes be able to stave off bankruptcy and return a company to full or partial health.

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RELATED FAQS
  1. Does working capital include stock?

    A certain portion of a company’s working capital is generally composed of earnings; however, current short-term assets that ... Read Full Answer >>
  2. What are some alternatives a company can attempt prior to resorting to liquidation?

    Some alternatives a company's owners can attempt prior to resorting to liquidation are selling the company, raising money ... Read Full Answer >>
  3. Under what circumstances might a company decide to liquidate?

    There are many reasons a company may decide to liquidate. A smaller company may decide to liquidate if one of the main owners ... Read Full Answer >>
  4. What happens to the shares of a company that has been liquidated?

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