What is the Best Type of Sale for Liquidating Assets?

If you are in the process of closing a business or need to sell surplus equipment or machinery, you may want to know what is the best way to sell assets in order to get maximize value.  The answer depends a lot on your particular circumstances but generally there are several options available and sometimes a combination of methods may be used.  Often a decision is based on the amount of time a company has in which to obtain the funds.  Two commonly used methods are liquidation sales and auction sales.

In situations where speed is not a requirement and a sale can be held over a longer period of time such as weeks, months and sometimes even years, liquidation sales are effective.  Without the need to rush, assets can often be sold for a higher amount.  The process can provide both the buyers and sellers a chance to negotiate on the price.  

An auction sale is done over a much quicker timeframe.  Typically an auction can be completed in about 90 days.  Commercial and industrial auctioneers have integrated the convenience and technology available on the Internet to allow auctions to be open to bidders from around the world.  Many traditional auction companies offer their customers simultaneous in-person and online bidding opportunities.  While auctions sales may not get as high of a price for assets as liquidation sales, they do have the advantage of getting capital into the hands of a business much quicker.

Before you proceed on your own, you may want to consider using the services of a professional asset recovery and disposition firm.  Enlisting the assistance of experts can be invaluable in your efforts to obtain maximum value for your assets.  They can help you to decide on the best course of action for your business and fully explain the process.  Be sure to use a reputable firm and chose one that has experience with your industry.

 

Rabin Worldwide is an international company that specializes in creating liquidity for complex manufacturing facilities with idle or marginally productive assets.  Rabin’s operations include selling entire plants, multiple plant locations, or surplus individual items by auction or liquidation and much more. Past auctions include names such as Hostess, Braniff Airlines, Montgomery Ward, and the Railway Express Agency.  Please contact us to discover how we may assist with your asset liquidation process.