Challenge
A global corporation is renowned for manufacturing superchargers that power performance and fuel-efficiency for car enthusiasts who want to increase speed in four- and six-cylinder engines. A key part in the assembly process of this product is the Triflex U40 machine. This equipment contains highly specialized, valuable components and was expensive for the company to maintain. The company completed a mid-year project using this machine and needed to dispose of it. The company had less than six months to find a buyer that would take the machine off its hands and permanently off its financial books to meet its year-end disposition goals.
Solution
The company was paying $35,000 each month to maintain and store the Triflex U40 machine. The asset was also highly specialized; the retooling and reconfiguration of the machine would cost approximately 80% of the cost of a brand new machine. This high expense and difficulty for modification meant a relatively short timeline to sell a highly niche asset. Liquidity Services leveraged its knowledge of asset information to locate the right buyers for this specific asset. Its team relied on both its market database and global network to find reputable buyers, including prominent industrial companies, to negotiate a sale.
Results
After marketing the asset to a global audience, Liquidity Services was able to successfully negotiate a sale that exceeded expectations for the Triflex U40 machine. As a result, we were able to sell and remove the asset ahead of our intended program goals. The asset was purchased by an industrial corporation for $646,000, a 43% increase above the client’s projection. The team met the client’s timeline and exceeded expected recovery by relying on its asset expertise and focusing on the customer’s goals and needs throughout the project. Through this expeditious process and sale, the client was able to eliminate a costly expenditure, return cash to its bottom line, and continue to put its time and efforts into powering the automotive industry.