When you close down a plant, there is always the question of equipment sales. How do you go about the liquidation process? Are there some better approaches to selling the equipment? Who is going to want to buy your plant's equipment, especially when you are an industrial and manufacturing business? All of this information is provided below.
Three Approaches to Selling the Equipment
There are three approaches to selling the equipment:
- Local auction
- B2B (business to business) sales
- Selling the equipment as a package deal with the plant and surrounding property
If you sell the equipment through a local auction, you will have to decide if you are going to parcel it out as individual pieces, or group related pieces together with the hopes of garnering a higher auction sale. If you sell it B2B, then other industrial and manufacturing businesses will barter and haggle with you on the price, and you will have to contact them directly to see if they would like any of the equipment you have. The last option is often the one most owners choose, because then their plants, the properties and all of the equipment is sold off in one massive package deal, but sometimes this is not quite so easy to accomplish. If your real estate agent pulls it off, great--if not, you may have to keep an open mind about using the other two approaches.
The Liquidation Process
Do you want to sell off your equipment fast, or do you want to sell it off for the most money? If you are like most business owners, you would choose both, but that may not work out for you. The liquidation process may require several months to get your asking price, or you may be forced to sell the equipment at rock-bottom prices just to keep from going bankrupt. If you are simply relocating your plant to another city and/or state, and you can wait on the sale of the current equipment, that can really work in your favor. Also, be sure to hire a real estate agent, property seller, or auction house that has proven results so that you get the best prices on everything you sell.
Buyers--It Takes All Kinds
While it is safe to assume that other owners and operators of manufacturing businesses and industrial plants are going to buy your equipment, you may be surprised by some of the buyers. Collectors of the strangest things will fork over good money for stuff they cannot even store in their garages. This is why it helps to open the equipment sales to the public as well as to the private sectors.