Auction Talk: Pre-Auction Strategies

Once upon a time, way back in the bygone days of the 1990s, companies that decided to close an industrial facility or suspend individual manufacturing operations did not put “sell equipment” at the top of their to-do lists. Asset recovery was usually a last-minute, frantic process that was more about emptying a plant than recovering profits. Expensive equipment in working order often ended up in a scrap heap or was literally demolished along with the building.

Occasionally, a savvy investment recovery specialist would be able to sell one or two premium items to a local dealer. But if your deadline was very tight, you were forced into having a single day auction event.  Many auctions were successful, but the success was a roll of the dice.  Factors such as time of year, weather conditions, and the location of the equipment heavily influenced results. You were lucky if you recovered a small fraction of the equipment’s value.

The 21^st century and its technological advances have produced many more modern and effective liquidation strategies that give you pre-auction options.  Auctions themselves can have many variations to help you avoid the common pitfalls of traditional liquidation events, including themed events with related equipment grouped together.  Depending on your timeline, investment recovery professionals now have a plethora of options available to help you get visibility and top dollar for your assets.

Asset Management Specialists can offer recommendations that help you determine which strategy will work best for your particular situation. It’s important to consider a variety of factors, including: timeline, the type and value of the assets you want to sell, and the demand for that particular equipment within your customer base. New technology brings flexibility to the process of managing surplus assets. As your deadline approaches, your schedule changes and now your liquidation strategy can change with it.

Surplus assets are like money left in the bottom of a piggy bank. It’s nice to know it’s there, but it’s more useful in your wallet.  As Investment Recovery professionals, you have a wealth of knowledge about the ins and outs of your company and your industry. With the right liquidation strategy, there are no limits to your ability to use your idle assets to maximize profits and minimize losses, making a notable impact on your company’s bottom line.

To hear real-world results of equipment auctions, click here to access our recent webinar.

What about you? Have you bought or sold equipment via auction? Which strategies did you use?