Maximizing Heavy Equipment Sales During COVID-19 Pandemic
  • D& Drilling Case Study

Maximizing Heavy Equipment Sales During COVID-19 Pandemic


Negotiated Lower Settlement
Over 500 Assets


Gross Surplus
45 Online Bidders


Total Recovery
2 Month Project


After more than 30 years as an established Horizontal Directional Drilling (HDD) company, D&G Directional Drilling (D&G) expanded their business into the construction industry. Unfortunately, the economy had a different plan for the business. The COVID-19 pandemic resulted in unforeseen and unplannable restrictions, project delays and/or cancellations, financial roadblocks with clients, and other challenges that deeply impacted D&G. The company faced the difficult decision of either riding out the downturn or stopping the expansion. Given their successful history, they opted to mitigate risk, stop the expansion, and pivot away from construction. This is where the AllSurplus team stepped in to help.

With custom-engineered solutions and a strong dedication to partnerships, AllSurplus worked with D&G Drilling to manage the disposition process, ultimately relieving them of over $1.7 million of debt.

The Challenges AheadEconomic DownturnAsset Valuesand More

Initially, AllSurplus was given a list of equipment to sell for D&G. However, we wanted to understand how the sale fit into D&G’s decision and next steps as a whole. The AllSurplus team sat down with D&G stakeholders to empower them to select the ideal approach for selling their equipment during a very challenging time. By discussing the big picture, AllSurplus learned that the goal for D&G was to completely move away from construction and sell not just the list of equipment they provided, but the entirety of their construction fleet.

Upon learning D&G’s ultimate goal, the AllSurplus team advised D&G to hold off on the initial sale of equipment so we could create an innovative strategy and solution that addressed the problem holistically. D&G had unique needs and roadblocks, including:

  • Equipment located at multiple locations throughout the US.
  • Economic downturn of the construction industry.
  • Market values for assets being sold were well below the lien values.
  • Already 90 days behind with several lienholders.

The Road To Better Net Recovery Through Innovative Solutions

Based upon the stakeholder meeting, D&G’s goals, and their roadblocks, the AllSurplus team developed a well-rounded, multi-step strategy for D&G to reduce their risk. Upon receiving approval from D&G on the strategy, we then determined D&G’s amount of surplus equipment and the list of lienholders and traveled to each D&G location to take inventory of both highly utilized and underutilized assets. Our experts were searching for assets that had additional value in overlooked places. As a result of the walkthroughs, AllSurplus was able to identify 10 times the number of assets that could be sold than originally identified.

We then performed a complete evaluation of D&G’s entire construction fleet and created an up-to-date balance sheet that represented the accurate information we needed to make a decision on dispositions. This aided in creating a 3 phase disposition plan designed to mitigate risk and allowed D&G to keep their team and resources focused on critical business decisions.

As the first phase of the disposition plan, D&G informed debtors that AllSurplus would represent the company in the disposal process of several assets, giving us the ability to negotiate a lesser settlement on our partner’s behalf.

Next, with D&G’s equipment spread across the US, our team utilized a 3rd party inspection service to manage equipment inspections. The inspections provided value at auction by allowing bidders to bid with confidence, knowing they were getting an accurate description and valuation of the item, regardless of the logistics.

Due to time restraints of the lenders, AllSurplus only had 4 weeks to complete the initial sales. Therefore, instead of doing the typical pre-auction 3 week “Buy Now” direct sale option and then moving to a 2 week auction, we placed the equipment directly into an auction with a “Buy Now” option leading all the way to auction day. This process enabled us to provide high recovery values in a short time period; D&G received their first auction check from us within 2 months of starting their partnership with AllSurplus.

Once the equipment was listed, our marketing team, along with our sister company, Machinio, drove existing and new buyers to the listings for maximum exposure. Leading up to the sale, our sales team leveraged buyer behavioral analytics to drive sales through email and phone.

Results of the Partnership

As a trusted partner, AllSurplus was able to successfully negotiate a reduction of $80,000 in late fees, penalties and payoff settlements. AllSurplus was able to get D&G current with lenders and reduced the overall debt by $1,785,736. Finally, AllSurplus was able to write a check to D&G for $35,254.

AllSurplus can help increase your overall net return while also giving you more control over your equipment sales. Our team of experts are here to help you overcome your unique needs and complex problems when it comes to selling your equipment. Are you getting back as much as you should from selling your surplus? Start yielding a higher net return with AllSurplus.

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More Sales Methods. Higher Recovery.