What are the different types of liquidation sales and which produces the highest return on the assets being sold?

There are three primary types of liquidation sales: Auction Sales, Orderly Liquidation Sales and Sealed Bid Sales. The type of sale chosen is usually determined by the urgency of the situation, the nature of the assets and the cost of maintaining the facility.

Auction sales are normally chosen when there is a need to sell the assets on an expedited basis. This urgency is normally due to significant costs related to the use and occupancy of the facility. Typically the assets are sold during a single day auction sale. Auction sale values can be lower than orderly liquidation values; in some instances, drastically lower.

An orderly liquidation sale may be chosen, depending on the assets being sold, if the costs to carry a facility are low, and the seller can afford to take its time to field offers from a multitude of bidders and negotiate for the best price for its assets. Often in these cases, the business can sell items individually or in appropriate groups designed to attract the most interest.

The third type of sale is the sealed bid sale. This type of sale takes the most time to accomplish but can produce the highest proceeds. Buyers are permitted sufficient time to perform due diligence on the assets and are required to submit a sealed bid by a specific date. Sealed bid sales are normally utilized when the assets are very specialized or the number of prospective purchasers is limited.

Knowing when and how to sell assets is one of the keys to maximizing ROI. That is why LiquiTec, AccuVal’s sister company, works closely with clients to prepare a short- and long-term plan to sell non-strategic and surplus assets. This may involve a variety of disposition methodologies – business brokerage; bundling product line dedicated assets and selling them through private treaty; conducting orderly liquidation and auction sales; or some innovative combination of these strategies. Regardless of how the assets are sold, we achieve the best results by executing the correct strategy and keeping the client’s best interests in mind.

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About LiquiTec
LiquiTec provides a complete suite of investment recovery services that maximize ROI for companies in over 100 industries worldwide. We work closely with clients to prepare a short- and long-term plan to sell non-strategic and surplus assets. Learn more at www.liquitec.net.