Is your company anticipating a site closure? Managing a closure can be a daunting and burdensome task, especially when the proper resources are not in place. A number of factors come into play, and the way these factors are handled can make the difference between ending the process in the green or the red.
Millions of dollars have been invested into running your facility and a closure doesn’t necessarily mean the investment is going to waste. Believe it or not, a closure is a great opportunity to gain capital return and recoup a significant portion of your assets.
EquipNet’s Site Closure Management Service can help ensure success and profitability by:
- Providing an onsite inventory of all equipment
- Redeploying assets to other facilities using ARMSTM and our Worldwide Logistics services
- Showcasing assets in EquipNet’s warehouses through our Global Consignment solutions
- Selling surplus or unwanted equipment on our online MarketPlaceTM, Auctions, and Own It Now sales channels
- Creating a decommissioning & demolition plan if needed
- Maximizing ROI through proactive asset management
Why utilize a surplus asset management company for a site closure?
There are a number of benefits to hiring an asset management company for facility closure management. EquipNet has years of experience handling facility closures in various industries – ranging from pharmaceutical laboratories to semiconductor fabs, food packaging facilities, and more. Our Corporate Asset Management Program provides profitable solutions for a number of needs.
- Proper Expertise
- Legal Issues
- Sales Options
Taking on a site closure without the proper expertise could result in a number of mistakes. Having a tight deadline is pretty common with closures – in order to gain the maximum return, a proper plan needs to be in place. With the right plan, you’re able to reach the proper target audiences and set fair prices for the equipment.
Used equipment dealers may also reach out to you to “take the problem off your hands” – these folks are not looking for what’s in your company’s best interest; oftentimes, they purchase equipment for pennies on the dollar, remove it for “free”, and then sell it for a much higher price to make profit for themselves. This goes the same for demolition companies – contractors will demolish the building with the equipment still inside, which may seem like a time-saving solution, but could result in a costly mistake. These contractors only pay you for the scrap materials and not for the value of the equipment itself, which could lead to a loss of thousands in potential profit.
When selling equipment without the right disclaimers, any mishap could inadvertently expose the company to lawsuits, like if the buyer suffers an injury while using the machinery. Another example is if you don’t have the right notification processes in place and fail to report a sale to the appropriate regulatory agency. Or if you don’t have proper financial controls in place, you could put your company at risk for regulatory action and financial audits. These are just a few of many examples that can lead to legal troubles.
Relying on a single sales channel without a plan B limits your options and your ROI significantly; one solution does not fit all needs. For such situations, EquipNet utilizes its Value Control Model. The Value Control Model shows how redeployment, negotiated sales with managed pricing, competitive auction events, and clearance programs fit together to deliver a consolidated service to ensure that sellers achieve maximum return. This funnel starts with redeployment to other facilities in the organization, followed by individual asset sales on our MarketPlaceTM, auction events and utilization of our Own It Now platform, followed by final clearance measures, such as donations, scrap, and environmental recycling.
Check out some of our other resources for asset management best practices, including eBooks, Infographics, Videos, and more.