Background
Oncologica, having played a crucial role in the UK's Covid response, found itself in a position of downsizing following the pandemic's decline. The company needed to efficiently reduce its testing capacity and monetize the value of its surplus equipment, a task requiring both strategic planning and precise execution.
A valued partner approached Liquidity Services with a unique surplus asset challenge from Oncologica's downsizing.
Wanting to eliminate surplus assets resulting from the downsizing Onocologica had two considerations that were paramount:
- Financial Guarantee: The commitment to a minimum guaranteed price was critical.
- Timing: Completing the project within the 2022 calendar year was essential for tax purposes and aligning with their strategic goals.
The Challenge
After learning about Oncologia's situation, Liquidity Services and a valued partner crafted an aggressive guarantee structure that provided a minimum floor of value for the surplus assets, continuing its core business in cancer testing services. This tailored solution managed the surplus assets and provided working capital without disrupting Oncologica's ongoing operations.
The Solution
Liquidity Services leveraged its strategic positioning and specialized industry knowledge to provide a decisive advantage for the client. The approach was meticulously tailored to address the client's needs, beginning with in-depth market research to identify over 150 potential end-users in the die-casting and automotive sectors, locally and internationally.
- Insider Connection: The familial link within Oncologia's BOD provided an initial advantage.
- Expertise: Liquidity Services' experience handling similar equipment categories was crucial.
- Aggressive Bidding: Liquidity Services' proposal of an aggressive guarantee structure provided a significant advantage over the competition.
Liquidity Services leveraged its expertise, strategic partnerships, and aggressive bidding strategies to secure 72 buyers from 15 countries Oncologia's surplus assets, resulting in £1,069,673 GMV.
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