Asset liquidation is a topic that is rarely discussed, but every once in a while, some business will have to deal with it in order to recover most of their asset. An auction industrial equipment is one of the platforms that can generate the highest possible recovery. Unlike the trend decades ago when only insiders and local dealers are competing to get a rock bottom deal, modern auction utilizes modern strategies and marketing techniques that ensures a wider and targeted market.
This aggressive and strategic approach used by the modern approach is what allows sellers to maximize the recovery value of assets. So what comprises the process of liquidation through this platform? Here are some of the basic things that sellers will have to encounter in order to successfully liquidate assets and recover the most out of its value.
Choosing the Right Approach
There are several ways to conduct an auction, and it is important to choose the right type based on the type of assets that are to be liquidated.
- Live – A live auction has always been the traditional way of conducting the business. It is ideal for assets that are all located in one place, so it is easy for bidders to inspect the assets at hand. Nowadays, this method has moved from on-site to a much comfortable theater style location to make the experience convenient for bidders, a different schedule is set for the inspection.
- Online – Online auction is another means of liquidating assets and is ideal if the assets are located at various separate locations. This approach is also convenient for bidders since it gives them freedom to participate even at the comfort of their own living room via a computer. This method can be timed which means, bidders can place their bids within a predetermined amount of time. It can also be real time, which is similar to a live-auction but the bid is placed through a computer.
- Sealed Bid – Sealed bid on the other hand is ideal for assets which are very specialized and required a very specific market. In modern auction, these three can be used simultaneously in order to recover the maximum value.
Get the Asset Value
Although the value of an asset is dictated by the bidder, it is still vital to get the current market value of the assets at hand. This will greatly help the auctioneer in understanding the current market dynamics such as the demand, competing disposition, along with other factors.
Invest In Marketing
A successful asset liquidation depends greatly on the marketing strategy. This ensures that the right market is being targeted and serious buyers are gathered to participate on the event. Many modern auctioneers utilize aggressive marketing strategies with the use of new media like web marketing, telemarketing, and email.
Liquidating through auction industrial equipment requires careful timing, which is why it is important to allow an ample of time for processing. The assets may require time for refurbishing, consolidating, marketing, and proper sale timing. In certain cases, there assets has to be liquidated in a staggered fashion to prevent flooding the market and avoid devaluation in the process. Hopefully this article has provided helpful information regarding the process of liquidating through equipment auction and how it can help maximize investment recovery.