There are two things you should consider to ensure satisfaction: reputation and experience.

During a slower economy, manufacturers look for ways to save money or generate additional funds. One way to save money on capital expenditures is to invest in used equipment. Additional capital can also be raised by selling excess equipment. Regardless of whether you are buying or selling used machinery, there are certain factors that buyers and sellers should consider to ensure that the transaction meets expectations. When retaining a third-party to represent your interests either in procurement or disposition, it is important to select a company with a good reputation that has experience in the industry and with the assets.

Reputation

Past performance is usually a good indicator of future performance. A proven track record provides a sense of security and comfort. The reputation of both sides of the transaction is important. Questions about the length of time in business, past clients they have worked with and references can provide clues to the reputation of the company.

Here’s one example on why researching the reputation of who you are working with is so important.

In Cleveland, Ohio, a “businessman” agreed to purchase the machinery and equipment that a company needed and then lease the equipment back to the company for a minimal fee. An initial security deposit was requested. In this case, the “businessman” required $17,000 as a deposit on a $100,000 metal-bending machine. After months of waiting for delivery and 147 voice mail messages, the company researched the “businessman” only to discover that this person had previously been convicted for fraud.

Experience

Experience in the industry and with the assets matters. From the seller’s point of view, does the disposition company know when and how to sell the assets to maximize ROI? The disposition company should be able to maximize exposure to the potential purchasers and generate enough interest to achieve the best sale proceeds and meet your expectations. You do not want an asset to be sold for less than you expect, but you also don’t want it to be priced too high for the market.

From the buyer’s point of view, is the procurement company experienced and able to recommend the best alternatives and assess the product quality and service for the best price? In the wake of some highly publicized retail liquidations, several articles were published condemning the liquidators for their sales tactics. For a company looking to invest in used equipment, it is important to know the true value of what you are purchasing and to be able to identify whether or not it is a good investment. An experienced broker can help to negotiate the best price.

AccuVal has the complete mix of valuation, advisory and asset management expertise necessary to assist companies in making important decisions that impact the value and utility of business assets throughout their entire life cycle. Whether you are buying, selling, redeploying or repurposing assets, AccuVal is equipped to provide the information and expertise needed to improve profitability and boost your bottom line.