Author Topic: Advice Wanted About Liquidating Assets From a Family Business  (Read 1134 times)

kc27

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Advice Wanted About Liquidating Assets From a Family Business
« on: January 08, 2018, 04:21:41 PM »
For the past two years, my siblings and I have been slowly selling off equipment that my father acquired mostly in the 1970s and 1980s for his business (he passed away a couple of years ago). So far we have utilized Craigslist, Ebay, and a dedicated website created just to catalog and show his equipment. We have made sales, but none of those methods has proven to be very efficient. My father, when he was pretty much retired and had time on his hands, would have been the ideal person to manage selling off of his equipment. But he had a hard time parting with any of it, because even though he was  no longer capable of working, having the equipment around made him feel useful (his words, not mine).

Part of my parents' retirement is a light industrial building they own, which consists of 5 units, the 5th unit being the one he used for his business. It could be producing rental income of approximately $800/month for my mother, but right now it is warehousing unused tools and equipment.

Anyway, any ideas or experience you can share on how to expedite the process of clearing out the tools and equipment would be greatly appreciated. The "one piece at a time" method I outlined above is taking too long.

shawndoggy

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Re: Advice Wanted About Liquidating Assets From a Family Business
« Reply #1 on: January 08, 2018, 04:37:46 PM »
Hire an equipment dealer to appraise and or just buy it all.  Yes it will be at a discount from "top dollar" on ebay, but there's a value to your time, and a value to the time that this space is not producing rent because it's being used for storage.

Somebody must sell this stuff, right?

kc27

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Re: Advice Wanted About Liquidating Assets From a Family Business
« Reply #2 on: January 08, 2018, 06:36:03 PM »
It is an eclectic mix of equipment. But that sounds like a good idea.

Frankies Girl

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Re: Advice Wanted About Liquidating Assets From a Family Business
« Reply #3 on: January 08, 2018, 07:19:31 PM »
Auctioneer that is well-versed in this sort of equipment? May not get top dollar but it will be quick, encompass the entire amount and they'll handle all the advertising pricing, organizing and just give you a check at the end of it. Do due diligence and get a few quotes on how much they'll want and how they'll handle things written out and make sure to check reviews if going this route.


kc27

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Re: Advice Wanted About Liquidating Assets From a Family Business
« Reply #4 on: January 08, 2018, 08:46:08 PM »
Auction or equipment dealer sounds like a good option. The stuff for sale really is all over the map - I put a lot of it online at www.divegearhere.com.  Did not get as much interest as I thought it might.

Proud Foot

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Re: Advice Wanted About Liquidating Assets From a Family Business
« Reply #5 on: January 09, 2018, 09:03:15 AM »
I agree with the other posters about having an auction. Looking at the equipment you have on your website a lot of it looks older. Just do whatever you can to get rid of it all as fast as you can. You will more than make up for the "loss" on the quick sale by being able to rent out that space.

Dezrah

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Re: Advice Wanted About Liquidating Assets From a Family Business
« Reply #6 on: January 09, 2018, 01:40:22 PM »
Posting to follow.

My FIL hoards industrial equipment.  He claims it's valuable stuff but I'm pretty sure it's junk that depreciates every single day.  Someday DH will have to liquidate all of it for his mom and sister.  I'm curious to see if the auction method will be worthwhile.

MayDay

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Re: Advice Wanted About Liquidating Assets From a Family Business
« Reply #7 on: January 09, 2018, 07:01:25 PM »
It doesn't really matter if an auction is "worth it".  You have three choices.

1. Hold on to this crap forever because you don't know how to get rid of it.

2.  Spend a boatload of time dealing with selling nearly useless stuff with very little market for it.

3.hire someone to auction it or buy it outright for pennies and be done.

There is no scenario where you are going to get a lot of money.

kc27

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Re: Advice Wanted About Liquidating Assets From a Family Business
« Reply #8 on: January 09, 2018, 08:20:22 PM »
Thanks everyone. I've contacted estate liquidators to give me quotes to empty out the unit. I am a day's drive from the property, so I have relied on previously enthusiastic family members who have grown tired of the chore of meeting equipment ad respondents at the property. This was after they had assured me it would not be a problem for them to swing by the building and meet buyers.

One sibling seems to enjoy selling one item here, one item there, so perhaps she can take some of the equipment home and continue her efforts that way.  I think she inherited my father's viewpoint that you are foolish to sell anything for less than maximum value. Where I would donate an old, semi-functional electric office typewriter, she considers it a triumph to advertise it for a couple of weeks and sell it for $30. She is going to be the person who gets a rash thinking about leaving money on the table by using a clean out service.

Thanks again, everyone. Your comments confirmed my feelings that expediting the rental of the unit is the best way to move forward.