Liquidity Services has the industry’s broadest range of services for the reverse supply chain, helping over 130 Fortune 1000 clients and 5,400+ government agencies achieve improved recovery value, increased sustainability, and greater compliance. We are excited to share with you the success stories of our clients as we work together to achieve results for their organizations through this blog. Today’s story focuses on the energy sector and the difficulties faced by a growing oilfield services company when attempting to sell an unwanted asset.
Through the acquisition of another company, a leading oilfield services company obtained a highly specialized oil rig. The new owner’s top management found the rig’s high storage, maintenance, and labor costs unreasonable for their needs and decided to sell the rig. After nine months of rigorous sales and marketing efforts, the company experienced lackluster results. The deadline to sell the rig was rapidly approaching and the best prospective buyer deemed the rig too specific for their needs.
Upon a recommendation from the prospective buyer, the oilfield services company contracted Liquidity Services and our Network International marketplace to utilize its expertise in asset disposition and surplus asset management for oil/petroleum, utilities, and mining companies. Our team immediately began a campaign that included focused sales and marketing tactics, with targeted media placements and communication with our sales database of buyers that had a profile for this type of rig.
Network International’s campaign was able to successfully generate four sealed bid offers by their deadline. This allowed the oilfield services company to accept the highest bid of $1.9 million, a 26% higher value than the highest offer received prior to Network International’s partnership. The buyer also negotiated an extension of employment for the rig’s crew. Within the three week timeframe, we not only met the seller’s disposition deadline, but also provided an asset that could be put to work right away for the buyer with all the compliance requirements in place.