Divesture Support

<<  Asset Acquisitions & Dispositions

Divesting is easier said then done.  From which parts of the business should to separate from and on which parts to focus on?

KHK Consulting LLC’s Services to you:

  • Preparation of information memoranda
  • Company valuation.
  • Identification & contact of potential buyers.
  • Development & implementation of negotiation strategies.

Asset Disposition Services

There are times when a business cannot successfully overcome various market and resource challenges.  When this occurs, it is important to pursue a course of action that protects the customer’s interests and maximizes recoveries for all parties.  At KHK Consulting LLC, it is always our goal to develop and implement creative solutions that will return a company to prosperity, yet we also have the experience and insight to quickly identify those situations that can no longer be turned around.  In these cases, our objective is to maximize the value of our clients’ business assets through:

Orderly Liquidation

Whether it is a single asset or an entire plant, often times the best way to achieve the highest return on idle capital equipment sales is through orderly liquidation.  With this type of approach specific assets can be targeted to specific buyers in a controlled manner with the least disruption to ongoing operations of your business.  During this period of asset remarketing our staff will utilize our extensive database of equipment users and maintain a more controlled approach to having potential buyers view and negotiate the purchase of your company’s assets.  A plan will be developed and implemented which will include advertising, web-based promotion, telemarketing and communication with asset brokers to assure adequate exposure of the assets being liquidated.  We will communicate with you on a consistent basis to update progress, value fluctuations and market conditions that pertain to each individual asset.  Liquidation sales provide greater control over the pricing of assets and create opportunities for negotiation and creative deal structuring.  Sales are conducted over set time periods with established pricing and terms.  Many companies opt for this type of sale due to greater returns and less stress.

Auction Services

KHK Consulting LLC is very active in auction facilitation.  We have close relationships with most of the top auction companies worldwide in our industry.  Auction facilitation is probably the most challenging facet of asset management.  Auction sales provide immediate cash flow as well as strict control over timetables you may be working within.

KHK Consulting LLC’s Services to you:

  • Global market knowledge expertise
  • Turn-key Brokerage Programs
  • Customized Marketing Programs for specialized assets
  • Consignment Sales
  • Settlement & Post-Sale Reporting
  • Traditional Sales through private treaty sales, negotiated sales, and sealed bid sales
  • Custom brochures and trade advertisements
  • Direct Marketing through mailings and online advertising campaigns
  • Outright Purchase: KHK Consulting LLC can purchase your surplus assets outright, usually within less than 5 business days
  • Onsite or Online Auctions for partial or complete plant/facility liquidation, including pre-sale preparation/planning and marketing
  • Payment collections from buyers and detailed reporting, including sales results, project costs and net proceeds
  • After Sales Support, including decommissioning, packing, shipping logistics and re-installation services

KHK Consulting LLC will select the optimal sales channel(s) for your surplus assets, ensuring you employ the best method to achieve the highest result.  Our goal is to realize the maximum return while maintaining the integrity of your company name and image.  We invite you to contact us whenever you have equipment to re-market or have any questions you feel we may be able to answer.  All inquiries are treated as confidential.

Equipment & Inventory Valuation

KHK Consulting LLC has over 20 years experience buying, selling and evaluating manufacturing equipment and complete production facilities.  The manufacturing equipment market changes from day to day.  KHK Consulting’s daily activities keep the firm current on today’s values.  Whether appraising a single machine or an entire facility, KHK Consulting LLC is your source for quality, accurate on time valuations.  A pre-appraisal of assets is essential to an auction or liquidation’s success and/ or lender’s security interest.  KHK Consulting LLC appraisers follow exacting standards to a science, combined with hands-on knowledge of the immediate marketplace, providing you with values you can rely upon.

Such appraisals quite often start with a so called “Desktop Opinion”, which is a professional opinion of values based on materials or information supplied to the appraiser and evaluated without the benefit of viewing the assets.  It is also a tool to determine the need for an appraisal or the scope of an appraisal.  Desktop opinions should clearly be marketed as a “professional opinion” and stated that is NOT an appraisal.

KHK Consulting LLC’s offers the following methods for appraising assets:

Forced Liquidation Value (FLV)

Forced liquidation value is the value realized when assets are sold piecemeal, under duress at public auction.  Forced liquidation value assumes that the buyer is responsible for all costs of removal and is purchasing the assets “as is, where is” with no warrantees or representations as to the condition of the assets being made by the seller.  It is further assumed that the assets are properly advertised in a manner considered to be commercially reasonable.

Orderly Liquidation Value (OLV)

Orderly liquidation is the value realized when assets are sold piecemeal, through negotiation, over a predetermined period of time (often three to six months).  Orderly liquidation value assumes that the buyer is responsible for all removal costs and is purchasing the assets “as is, where is”, with no warrantees or representations as to the condition of the assets being made by the seller.  It is further assumed that the assets are properly advertised in a manner considered to be commercially reasonable.  Buyer(s) and seller further acknowledge that if an acceptable price cannot be negotiated within the time period specified to offer the assets for sale at public auction.

Fair Market Value (FMV)

Fair market value is defined as the price, expressed in terms of cash or cash equivalents, at which asset(s) will change hands between a willing and able buyer and seller.  It is assumed that both the buyer and seller are acting at arm’s length in an open and unrestricted market.  Furthermore, neither buyer nor seller is under compulsion to buy or sell and both have reasonable knowledge of the relevant facts.

Insurable Value (IV)

Insurable value is the portion of the value of an asset or asset group that is acknowledged or recognized under the provisions of an applicable loss insurance policy.

Replacement or Reproduction Cost (RC)

Replacement cost is the current cost of a similar new asset(s) having the nearest equivalent utility to the asset(s) being valued.  Furthermore, replacement cost analysis takes into consideration the transportation and installation costs required to facilitate normal operation.

Reproduction cost is the current cost of an identical new asset or assets.  Reproduction cost analysis assumes the same materials, construction standards, design, layout, utility and quality of workmanship to derive at an estimated cost to construct an exact replica of the machine being appraised.

Detailed services