Our client is a leading South African construction firm focused on building construction, heavy industry, infrastructure, mining services, marine, and oil & gas. Due to the lack of new power line infrastructure, the company decided to close its Power division. As the company’s long-term surplus asset management partner, Liquidity Services was well-positioned to efficiently maximize value for the surplus resulting from this closure.
Power line surplus is specialized and has a limited potential market. Reduced government funding for power projects further decreased demand for this surplus. Despite these challenges, Liquidity Services created a robust market for the client’s surplus to ensure maximum recovery.
Liquidity Services elected to sell the surplus through online auction and private treaty sale methods. Online auction is ideal for high-demand surplus, while private treaty is the proven sales method for specialized assets. Leveraging both methods ensures maximum return.
Liquidity Services lotted all assets and posted them for auction on GoIndustry DoveBid, one of our leading auction websites for capital assets. Leveraging our multichannel marketing strategies and vast global buyer base, we promoted these assets to the most possible interested buyers. Assets not purchased through auction were sold via private treaty.
Within a short timeframe of 45 days, Liquidity Services sold all of the client’s surplus for nearly $2.25 million (27 million South African rand). This figure exceeded the reserve rate by nearly 10%. Our online auction achieved approximately $1.4 million (17 million rand) in sales and private treaty accounted for the rest.
By partnering with Liquidity Services, the company turned the challenge of closing a declining business unit into working capital to fuel its core business. Selling all assets associated with this unit allowed the company to safely shut down operations and avoid substantial storage and removal costs.