Our client is one of the world’s largest suppliers of advanced aerospace and defense products with nearly $15 billion in annual sales. Liquidity Services recently supported this client on two initiatives that differed greatly in complexity and scope, illustrating our ability to scale our partnership according to a specific project’s needs.
After acquiring a major aerospace manufacturer, the client needed to strategically restructure operations and decided to close two UK facilities. With eight months to clear the first facility, the client aimed to progressively sell its assets so it could maintain production capabilities as long as possible. For the second site, the client would have only about two months after production ended to efficiently clear the facility by selling or disposing of all assets.
The client selected Liquidity Services to maximize value for both projects. Over eight months at the first site, Liquidity Services worked closely with the client’s project team to continually catalog, manage, value, and sell surplus assets as they became available. Both teams met regularly, facilitating an effective partnership.
Tapping its unparalleled market database and industry knowledge, Liquidity Services accurately valued the client’s assets, helping it set realistic reserve prices to ensure high recovery. Liquidity Services posted most assets for sale on its online marketplace, including detailed product information and compelling photographs to maximize bids. We sold high-value, specialized assets through private treaty, the preferred sales method for these items.
Liquidity Services also leveraged AssetZone®, our proprietary asset management software, to identify opportunities for redeploying surplus to the client’s other facilities. Through redeployment, the client realized cost savings by reducing the need to buy new.
Liquidity Services directly negotiated with buyers for surplus not redeployed, providing standard pricing structures and terms and conditions to ensure our client received a fair market value. This removed a significant burden for our client, allowing it to focus on core business. Liquidity Services also carefully supervised and scheduled buyer inspections of assets, which allowed the client to confidently continue production throughout the sales process.
At the second site, Liquidity Services faced a tight deadline to sell or dispose of the client’s assets. Since most remaining assets were relatively low value, we focused on efficiently cataloging and selling as many as possible. Leveraging our global and industry-targeted buyer base, we delivered superior return for this surplus.
Liquidity Services optimized value for the client’s surplus and helped it meet both facility sites’ closure deadlines. At the first site, Liquidity Services sold approximately 95% of all assets (and sustainably scrapped the rest) for over $1 million (over £650,000) in recovery. At the second site, Liquidity Services sold a wide range of low-value assets for almost 100% above client expectations, also achieving a 95% sell-through rate.
This partnership showcases Liquidity Services’ ability to provide customized surplus asset management solutions. Liquidity Services partnered with the client to provide consultative management, valuation, and sale of its surplus assets throughout an eight-month project. We also supported a more straightforward – though time-sensitive – facility clearance by expediently selling assets for maximum recovery. This flexibility sets Liquidity Services apart as a global provider of surplus asset management solutions.
Tapping its unparalleled market database and industry knowledge, Liquidity Services accurately valued the client’s assets, helping it set realistic reserve prices to ensure high recovery