The disposition of equipment that remains is a considerable challenge that usually corresponds with the dispositions of various business assets. An evolutionary approach to asset disposition is converting equipment and machinery from an impediment into a resource for new disposition channels. This paper, therefore, aims to describe the differences between the four strategic dispositions namely: turnkey sale disposition, component basis disposition, advisor’s strategic disposition and traditional listing disposition.
- Turnkey Sale Disposition
When confronted with the possibility of an industrial disposition, the optimum result is a turnkey sale that includes the combined sale of the firm’s assets, equipment, machinery and tools. A turnkey sale is a global answer for both the buyer and the seller that establishes mutual benefit. In this case the buyer frequently moves in expeditiously, which saves the seller any lengthy cost of carry expenses on the building and abolishes the burden of equipment and machinery disposal.
- Component basis Disposition
If a turnkey sale is not created, the assets can be disposed of a component basis, either at auction or in a private treaty. Usually auctions are constrained to distressed properties that need disposition within a very short period or for properties that are situated in difficult markets. The belief that auctions should serve only as a last option is a misconception. Actions can deliver a unique international approach and reach an extensive prospect pool. When equipment and machinery are correctly priced via comparison and calculated marketability with a worldwide means, can deliver a very competitive sale price at auction.
Dispositions advisors believe that they can attain a substantial superior selling price for various commercial properties or land and a higher chance of timely closing if such assets are first examined by advisors as a potential renovation, development or redevelopment project. Advisor’s strategic disposition keeps firms in better control of their own assets and puts them in the position of eventually being able to choose a buyer from among a prequalified prospect of buyers who have been informed about the development or redevelopment of the subject property.
- Traditional Listing Disposition
Traditional listing disposition is usually performed by brokerage companies. It provides a “quick close” option in which the seller does not allow buyer entitlement contingencies but in turn offers a substantial price discount. The approach is thus very beneficial to the firm carrying out disposition since the process can results into a lot of profits.
In the light of these diverse strategic dispositions, it is important for a firm carrying out disposition to select a strategic disposition that suits it best. The firm should be familiar with the particular strategic disposition it is willing to apply and the disposition process should results to at least the firm obtaining some profit if not mutual benefit between it and the buyer.