Sooner or later many businesses end up with more equipment than they require for continued operations. This is especially true of machine shops, construction companies and printing companies. Many business owners love their toys and when they buy a new machine they simply keep the old ones “just in case,” often mistakenly rationalizing it by saying that if business increases significantly, they will need the old machine too. The sad truth is that if you sell a machine now, and a year later you find that you need it, you can usually buy another one at a similar price. So, why hang on to surplus equipment?
As professionals in valuing businesses we know that a profitable business is valued based on its earnings not on its assets. So, the sale of surplus equipment does not diminish its value at all. In fact, it increases it. By identifying and selling your surplus equipment, we can maximize the benefits for you, our clients.
Other reasons to sell your surplus equipment include:
- Generate cash flow for operations
- Eliminate overcapacity
- Respond to downturns in the market
- Lower the business’ breakeven point
- Eliminate congestion / free up space
- Streamline operations
- Upgrade / technology changes
- Prepare for the sale of the business
Murphy Equipment Brokerage can help market and sell your equipment leaving you free to run your business or concentrate on readying the business for sale, whichever is the case. The equipment often sells more quickly than the company so you will benefit from early cash flow without diminishing the value of your company. Finally, you can usually benefit by increasing the efficiency of the company by eliminating congestion and streamlining operations.