Equipment disposition in the context of Orderly Liquidation of Business is, by definition, a once in a lifetime event that owners don't get to learn from because there is rarely a second time. Lacking experience, and confronted with unfamiliar terms such as "buyer's premium" and choices as to "auction" or "private sale", it's amazing that many owners continue to "do it on their own" rather than engage specialized advisors such as my NAPL colleagues who handle these matters regularly.
A recent case right on my desk illustrates the benefit of seeking outside consultants to guide the owner on HOW to maximize value of equipment in the orderly liquidation scenario.
The owners of a $3.0 million annual sales commercial printer reached the point of decision as to "fix it" or "sell it", and, in the negotiations with a buyer for intangible assets, the discussion turned to the subject of equipment. The buyer had a friend who wanted to make an offer. The number came in at $170,000, far less than a recent equiment appraisal.
The owners started to panic, thinking that at least 170K is better than nothing and fearing the worst.
Thankfully, they calmed down and eventually did not accept this offer. They then retained Bruce Perlstein of NAPL who promptly brought in a resource that will guarantee our client over $50,000 more than the 170K offer. Our client would have left at least 33% on the table if they grabbed the first offer!
In the words of one client, "you'd be nuts to do this yourself".
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