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Web: www.liquidityservices.com Web: www.go-dove.com

Email:valuations@liquidityservices.com Tel: 0207 098 3700

disposition. Globalisation has impacted the way that companies view the management of their assets. Most companies do not have a central, clear, and consolidated global approach to surplus asset management, a transparency risk. This business gap presents an opportunity to gain efficiencies through additional cash-generating activities, compensating for the tightening of capital expense budgets. Companies are also seeing that isolating themselves to local buyer markets curbs the potential value they can recover on surplus, idle, and end-of-life assets. In order to maximise recovery on the sale of assets, companies have to work with partners that have an extensive, global buyer base. Additionally, it’s critical for multi-national companies to have one easy-to-use system to manage and redeploy assets internally. Our proprietary web- based AssetZone® system is utilised by leading companies to provide a real-time view across the corporation and to manage and extend the life of assets. One client in the automotive supply industry saved more than $7.9 million in capital expenses by utilising our asset management platform; enhancing its sustainability mission in the process through less waste disposal.

Q

How can companies get the most from their assets?

Elaine Shelley: Understanding the value of assets is key to maximising value. An accurate valuation from a credible expert empowers companies with the right information to make smart decisions in any asset scenario. Our asset appraisal reports provide a concise, clear summary of risk for clients while taking into account security arrangements, the financing method, lender risks, and exit scenarios. We find that valuation services are applicable in any industry, so we have dedicated market

sector teams with in-depth experience in their respective industry. For example, our machinery and equipment team provides valuation services for manufacturers, rental fleet operators, and any business with machinery assets.

Rafael Postepski: Ultimately, extending the life of assets should be a priority, regardless of industry sector. Forward-thinking companies have visibility into the assets across their enterprise and have a trusted partner with the right tools and experience to make recommendations on selling, redeploying, and valuing assets.

Q

What are some of the common challenges that face company assets and what are the potential solutions to these?

Rafael Postepski: There are common issues that every company may face at some point around their surplus assets. Companies may not know the value of the assets they are selling or have access to buyers interested in those particular assets. The best solution is to employ a reputable partner with experience in the relevant asset categories. Asking the vendor upfront questions on reporting, analytics, use of technology, processes, buyer base, and market experience, will help companies to find a partnership that will work for them over the long term to achieve its strategic asset management goals.

Elaine Shelley: From a valuation standpoint, companies can struggle with identifying and

employing the best method for calculating asset values. Reliable market evidence based on real transactions is the best indicator of value, and this data will be readily available from an expert valuer, who will have both a database of asset information and the expertise to accurately interpret the data. Companies are beginning to understand that making decisions without proper valuations can leave companies without supporting data. A well-researched valuation can only strengthen the case for business decisions while complying with legal requirements.

Q

What are your top tips for asset management in 2014/15?

Rafael Postepski: Risk and compliance are fast becoming critical areas of focus in asset management. Companies may have invested in compliance for their forward supply chain, but it’s often not the same case in their reverse supply chain. As we have seen; what a company doesn’t know, can end up being a costly liability. A tested and proven process combined with expertise in asset management and the respective industry, is key to mitigating risk and adhering to applicable regulations in the US, EU, and other countries and jurisdictions. In one recent example, a Global 1000 company was found in violation of foreign bribery laws and paid $26 million in fines. As assets that can carry private data are sold or cross borders into other countries, it’s important to have comprehensive compliance programs in place and apply effective data wiping and restricted party screening services from an established expert.

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