Closing a manufacturing facility is rarely an easy process. You could have any number of reasons for closing your facility. From financial issues or company-wide reorganization to simple retirement. You might even decide that you are done owning a manufacturing facility. Thus, are planning to return to the traditional workforce.
Whatever your reasons—and there can be more than one—you are at the point where it’s time to shut things down entirely. Now, you must sell off your machinery and equipment.
Here are some straightforward steps you can take to get the liquidation process underway.
Make a complete list of everything that makes up your manufacturing facility. This should not only include your manufacturing equipment but office furniture and related business equipment. Take a photo of each item and write a brief description. Include the brand, model, and serial number where applicable.
This process collects the information you’ll need when selling items off. Plus, this record will be helpful come tax time.
Wherever possible, arrange to return any raw materials, packing, and office supplies that are in packaging or near new. If these items are in good condition, your supplier will likely offer you a full or partial refund. Check your supplier’s return policy for any special conditions that may apply.
You may still be paying for some of the equipment you no longer have a use for. In that case, you may need to obtain permission before selling these items. Look at your creditor’s policies and work with your accountant or lawyer to determine what you owe and where certain things should end up.
Similarly, if you lease equipment, check the lease agreements. Find out who is owed what and where the equipment should go.
As you’re sorting out returning materials and lease or partially-paid equipment, also make sure to make a note of the value for each inventory item you wholly own.
Remember, everything has value. While equipment such as injection molds and die-cut machines have apparent value, don’t overlook more mundane items like office chairs, tables, printers, and fax machines. You can check auction websites to determine the going rates. You can also pass that task to a professional appraiser to save you time.
Make sure that what you want to sell is yours to sell. Go through your lists once more to see if there are any leased items or equipment still being paid for before listing your assets for sale.
Once you organize and appraise everything, you can start selling. Check with other businesses in your industry to see if anyone has an interest in purchasing your equipment. You can also directly post items for sale online or in an industry publication. You can also make arrangements with an experienced dealer in used manufacturing equipment to help.
If you’re in a rush to unload your assets, be prepared to offer discounts.
Shutting down a manufacturing facility may not be the chore you want to do. But, if you have to do it, you want to do it in the best way possible.
If the task is too large or complicated, consider hiring a professional liquidation service to help. They will evaluate your assets, help you figure out their status, and handle sales in exchange for a percentage of the profits.
Depending on how well you handle the situation, you may end up in a better position than you expect.
This article was brought to you by VX LLC, an industry-leading buyer, and seller of slitting lines, recoilers, coil handling equipment, and tension levelers, located in the United States, selling worldwide!
