Challenge
A leading aerospace and defense contractor made the decision to close a manufacturing plant in the Midwest United States. The asset disposition plan called for availability of the remaining assets over a period of months and consisted of equipment and items from a number of different asset categories, which included:
- Test and Measurement
- Environmental Test
- Machine Tools
- Transportation
- Plant and Process
Solution
The company chose a third-party provider to assist with the disposition process, and engaged Liquidity Services. Its experienced team faced a limited timeframe and a range of specialized assets that needed to move through the process relatively quickly. However, the volume of equipment did not demand a full scale online auction event for the closure. Liquidity Services instead chose to divide the assets into various equipment groupings by vertical industry on its GoIndustry DoveBid online marketplace. For instance, RF chambers and testing equipment were slated for auction in the electronics category and a Motorhome was sold in the transportation category. As part of its customer-focused solution and commitment to compliance, Liquidity Services employed full process transparency with regular reporting to the client.
Results
This marketplace strategy allowed the team to meet its timeline, and boosted the sale’s ability to attract industry-specific buyers from across the globe, including those in targeted regions. The sale results delivered returns more than 75% over expectations. Additionally, the Liquidity Services process provided extensive buyer vetting and export control support into the disposition process; this ensured proper compliance protocols were monitored and adhered to. By implementing strategic decision-making around disposition to custom suit the asset types, Liquidity Services was able to sell this specialized equipment successfully, while recovering higher values for each asset.