Our client is the largest professional services network in the world. After being appointed administrator over a company by the bank, the client became liable for a UK premises and all assets within it. These included a wide range of industrial and food production equipment as well as scrap metal and packaging materials.
Our client had already sold the freehold property and negotiated a timeframe of 12 weeks to safely remove all assets and clean the facility. The client asked Liquidity Services to submit an offer to purchase the assets outright, therefore de-risking its situation and providing certainty and a clear exit.
The client engaged Liquidity Services to purchase the insolvent assets through a principal deal. In a principal deal, an investment recovery partner purchases the client’s assets outright for a fixed sum before sale. This transfers risk from the client to Liquidity Services, ensuring capital for the client. After expertly valuing the client’s assets, Liquidity Services agreed on a purchase price of £350,000 ($530,000) with the client.
Then, we prepared the assets for sale. For all items with sale potential, Liquidity Services collected information to complete detailed lot listings on our online marketplace for surplus assets. Much of this machinery had to be washed and sanitised, which was challenging because the facility no longer had hot water or pressure washers.
Post-sale, Liquidity Services ensured all assets were safely, compliantly removed. Taking off the facility’s roof made it easier to remove larger assets without damaging the building or the equipment itself. By employing 24-hour security, we ensured the safety of the equipment and curious bystanders.
Finally, we thoroughly cleaned the entire facility. We disposed of all waste, washed the floors and walls, and sold scrap to a local vendor, leaving the facility in “broom-swept” condition. All unsold assets were removed and disposed of sustainably.
By selling its surplus facility assets to Liquidity Services through a principal deal, the client removed risk and burden while generating working capital. Liquidity Services handled the management, sale, and removal of the client’s surplus, freeing up resources for the client to focus on its core business of delivering top-quality professional services. And by managing the site clearance and cleaning, we saved the client over £60,000 ($91,000) it would have paid agents and contractors.