Background
Our client is one of the world’s leading electronics manufacturing services companies. When sales of a well-known tablet brand declined in the global market, the company needed to close a facility that manufactured components for these tablets. In addition to the usual challenges of closing a facility, the company needed to sell and remove close to 2,000 items from the site including over 450 high-quality, late-model CNC machine tool assets.
The company sought a partner to sell these assets within a relatively tight timeline of six months while handling all aspects of the sale. Having successfully partnered with Liquidity Services on similar projects before, the company selected us to swiftly maximize recovery for its assets.
Solution
Liquidity Services managed, sold, and compliantly removed the client’s machine tool assets within the six-month timeframe. Our team with members from China, the Philippines, and the UK visited the facility to audit the assets and collect key information – such as descriptions, photos, and specifications – used to create auction “lots”, completing this process in just two weeks.
Working closely with the client, we helped it select the appropriate method for selling its assets. By using both online auction and private treaty sale methods, we optimized recovery while expediting the sale. A global marketing campaign that included broadcast email, online advertising, social media, and telemarketing promotions maximized buyer interest in the assets.
Liquidity Services handled every aspect of the sale, from risk mitigation to asset removal. We vetted all buyers by screening them against over 200 restricted-party lists. Partnering closely with international buyers, we ensured items were transferred across borders in compliance with all export controls considerations. Our dedicated buyer customer support team made sure that buyers completed transactions within the client’s timeline by answering all questions and helping with the time-consuming process of dismantling and compliantly removing assets.
Results
Through a combination of online auctions and private treaty sales, Liquidity Services generated over $15 million in recovery for the client, more than 30% above its expectation. We sold all assets and removed them within the client’s tight six-month timeline.
The value we provided to the client went well beyond just recovery. First, we mitigated client risk through buyer vetting and complying with all export controls considerations. Second, we managed all aspects of the sale, from identification and “lotting” of assets through asset removal, freeing up significant resources for the client to focus on core business.
A project of this scale, complexity, and timeline would be a challenge for most organizations without dedicated surplus management resources. That’s why leading organizations trust Liquidity Services to efficiently turn surplus assets from facility closures into maximum recovery.