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.

When a Business Closes, Steps to Liquidating the Assets

Once the decision is reached to close a business, there are some steps to take as an owner of the company.  Even if the decision to close is voluntary and not a forced liquidation, you will most likely want to sell off the company’s assets.  It is recommended that before you do anything, have a plan in place and consult with your tax advisor and attorney.  Also keep in mind; in many cases you will need the consent of your creditors before you proceed.

One of the first things you can do to get started is to make a list of all the property the business owns along with the equipment and machinery, office furniture, technical devices, and vehicles.  While doing so, take photos, note the condition of the asset, age, maintenance history and repairs, and warranty information.  Any of your assets that are worn out or obsolete should be donated and used as a tax deduction or recycled if possible.  On leased equipment, inquire as to the amount still owned and consider buying it outright if you know it can be sold for a higher amount. 

Add to your list any intangibles assets you may have that are of value such as trademarks or patents.  Also your competitors may be interested in any favorable contracts you have with suppliers as well as your list of customers and business contacts.     

At this point, a company that specializes in asset recovery and disposition services can be beneficial as you may not have the time or the expertise to efficiently handle this part of the process.  Look for a company that has a proven track record.  They will be able to provide you with professional appraisals of your assets, and if you wish, also assist with the actual liquidation process.  Furthermore talking to professionals can help you to determine what type of sale makes the most sense for your business.  

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.