The Essential Guide to Equipment Auctions

Equipment auctions offer a viable solution for businesses looking to reclaim value for their surplus equipment or for businesses looking to pay off debt through the liquidation process. Regardless of the reason why a business might opt for an industrial auction – the process itself can appear to be overwhelming. Opting for the services of a reputable auctioneer can aid in providing you with a greater understanding of what to expect through the entire process.

 

Today we’ll bring it back to basics in our guide for what businesses can expect before, during, and after an equipment auction.

 

The Preparation Process

 

If you’ve decided to opt for the services of an auctioneer to reclaim value for your assets, there are a number of things you can expect before auction day. The auctioneer will begin by assessing your business’s needs, and will conduct a thorough assessment of your business’s relevant financing and accounting documents.

The auctioneer will also guide you through the appraisal process, in which they will provide an estimate the value of your equipment based on market price. They will likely also take stock of any necessary details of your business’s equipment in preparation for auction day. At the same time, the auctioneer will also employ a marketing strategy to spread awareness and attract prospective buyers to the auction.

 

During the Auction

 

Arguably the most exciting part of the auction process, all your preparation will eventually lead to auction day. Whether conducted in person or online, this is where you can expect buyers to bid on your equipment lots – with the highest bid winning. The auctioneer will have organized the auction to ensure a smooth bidding process for all parties involved.

All the marketing and awareness raised in the preparation process should hopefully lead to a healthy number of buyers willing to bid on the available lots.

 

After the Auction

 

After the equipment auction, you can expect the auctioneers to tie up any loose ends and the equipment lots are available for pick-up by the winning bidders. At some point, you should receive the funds which were claimed from the auction. Depending on whether or not your business is liquidating, you may end up using those funds to pay off any investor or creditor debt.