Most organizations must at some point face the logistical challenges of upgrading or replacing their production machinery, a process which is bound to result in surplus assets and the need to sell them.
Through a proven sales approach, your organization can turn these surplus assets into maximum recovery. Read on to see how one automotive industry manufacturer did just that with the help of Liquidity Services.
One of the world’s largest tier-one automotive suppliers of metalworking and machine tools was replacing its own production machinery within a limited timeframe and looking to supplement capital expenditures. With new machinery arriving soon, our client had just four months in which to dispose of 140 machines located in seven countries: China, Germany, Italy, Turkey, Japan, the U.S., and the UK.
Liquidity Services quickly undertook a principal deal position, purchasing the 140 machines outright and granting our client quick access to capital while mitigating import/export risks.
Our experts in London and Shanghai collaborated to manage and resolve contractual and tax issues involving the sale that stretched across multiple jurisdictions, nationalities, and languages. These issues included 11 different contracts, internal and external country sale agreements, taxes, and bonded assets. For assets sold from China, we managed all issues involved with exporting the assets internationally while ensuring the client didn’t have to pay onerous trade duties.
We then leveraged both our partnership with Prestige Equipment, North America’s largest used machinery dealer, and our GoIndustry DoveBid online marketplace for surplus capital assets, to dispose of the assets via both private treaty sale and online auction.
Liquidity Services sold all 140 machines for over $8.5 million in recovery. Our comprehensive marketing campaign generated over 20,000 individual online page views from bidders in over 15 countries including China, France, Germany, the U.S., and the UK.
By purchasing our client’s surplus assets through a principal deal, we provided the client with valuable capital to invest in its core business while protecting it from all risks associated with managing and selling these items. We also successfully managed the equipment purchase and project completion, ensuring our client avoided significant decommissioning costs and was able to clear its sites within the target timeline.
Want results like these? Contact Us today and find out how you can maximize recovery on your surplus assets by partnering with Liquidity Services.