Asset Disposal
If your company is struggling and administration or liquidation looks the only option, we can help you dispose of your assets without the expensive professional fees that eat away at any cash raised when an appointed administrator or liquidator is appointed.
Our flexibility to assist in all types of disposals both on-site and off-site, offering a total solution for auction buyers by way of shipping worldwide, ensures the services we offer our clients and buyers use up-to-date technology to widen the buying audience.
There are instances where clients wishing to turn off the salary tap at the earliest possible opportunity as both store management and staff no longer have the desire to assist in these areas; this can create bad feeling, obstruction and delays in a quick exit.
Corporate Auctions can implement and manage close-out liquidation sales of companies wanting to close a single location or a chain of stores, on a commission-only basis. We will ensure that the liquidation program runs smoothly and delivers the maximum sales proceeds to our client, while adhering to a short liquidation period.
Signs of a Troubled Business
A company may require the services of a turnaround specialist for many reasons. Here are the most common signs of trouble (in most cases a business will display more than one of these signs):
- Market Lag
- Lack of Operating Controls
- Over Diversification
- Explosive Growth
- Family vs. Business Matters
- Operating Without A Business Plan
- Ineffective Management Style
- The Precarious Customer Base
- Overrunning the People Capacity
- Poor Lender Relationships
Market Lag
Changes in the marketplace have bypassed a company, leaving it with sagging sales and lost market share. For some, the deficiency is technology; their equipment has become obsolete. For others, the problem lies in sales and marketing; their products or services slide into obsolescence because the company hasn’t kept pace with the needs of the marketplace.
Lack of Operating Controls
Managing a company without adequate reporting mechanisms is a bit like flying an airplane without an instrument control panel. If management is making decisions on old or inaccurate information, the company can easily head in the wrong direction.
Over Diversification
Today many businesses feel the pressure to diversify in order to reduce risk. However, too much diversification may cause them to spread themselves too thin. As a result, they become even more vulnerable to the competition.
Explosive Growth
Companies are sometimes tempted to add value by engineering a growth spurt. However, a company cannot expand its way out of trouble. Growth often carries a very high price tag and leveraging a company to such a degree means that management must operate with little or no margin for error.
Family vs Business Matters
Sibling rivalry has ruined many privately held companies. Deciding which relative or which of their offspring should run the business after retirement or death can be one of the most difficult challenges a privately held business owner can face. If the decision is based on emotion (love or guilt) rather than sound business judgment, trouble can soon follow. Divorce can also shatter a business, leaving it in fragments. Nepotism can cause bright, skilful managers who aren’t part of the inner circle to take their talents elsewhere.
Operating Without A Business Plan
Surprisingly, a number of growing companies operate without a business plan. Armed with years in the business, management tries to operate by the seat of its pants. Their plan may change overnight because it is based on their own ‘feel’ for the market. In other cases the business plan exists in everyone’s head rather than in writing. The result is that plans are carried out according to individual interpretation.
Ineffective Management Style
The directors of a company may be unable to delegate authority. No decision, big or small, can be made without his blessing. As a result, the rest of the management staff is without solid experience or any feeling of ownership. If the president suddenly dies or becomes incapacitated, the whole company is in danger of collapse.
The Precarious Customer Base
Few businesses have the luxury of determining the exact proportions of their customer base. Nonetheless, some companies do put too many eggs in one basket. If a manufacturer selling to large retail chains has two customers who represent 60 percent of the business, the company is obviously vulnerable. The loss of just one customer could put hundreds out of work and send the business into bankruptcy.
Overrunning the People Capacity
If a business is a success at £1 million a year, it could become a dismal failure at £5 million a year; the reason is that the personnel may not be able to work successfully at the new level. For example, managing engineering operations for a company with one warehouse/factory differs greatly to managing two or more sites. The same challenge applies to others in key positions in marketing, sales, operations and manufacturing. A company can overrun its ability to manage.
Poor Lender Relationships
Some companies develop an adversary relationship with their financial lending institution. Fearing that their loan or loans may be in jeopardy, they attempt to hide financial information from the bank. Phone calls are not returned. Reports stop being filed. Since money is the lifeblood of almost any business, this kind of lender relationship only leads to more trouble.
