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    What Is Liquidation?

    Liquidation is the process of converting business assets into cash. There are many reasons for doing so. Businesses have any number of reasons for needing to raise cash, such as:

    • Paying off debts
    • Closing the business
    • Expanding in their current location
    • Moving to a new location
    • Adding another location
    • Investing in new equipment
    • Upgrading existing equipment and systems
    • Investing in research and development activities

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    Industrial liquidation is the liquidation of assets by businesses in the industrial sector of the economy, including:

    • Construction
    • Aerospace and defense
    • Oil and gas
    • Biotech and medical
    • Manufacturing of any kind
    • Iron and steel foundries
    • Food and beverage
    • Automotive
    • Packaging
    • Plastics
    • Pharmaceuticals
    • Transportation
    • Printing and binding

    What Industrial Assets Can Be Liquidated?

    Anything with cash value can be liquidated, but industrial liquidation refers specifically to the liquidation of physical assets, not investments such as stocks and bonds. Industrial liquid

    Industrial liquidation most often involves the sale of:

    • Manufacturing equipment
    • Supplies and materials
    • Inventory
    • Returns from customers
    • Redundant assets
    • Recyclable waste

    Who Does Industrial Liquidation?

    Some industrial businesses may be able to do their own liquidation through the typical “Going Out of Business Sale” or “Liquidation Sale” approach. However, that takes a good amount of effort and perhaps more time than is available, especially when assets are sold off piecemeal—one at a time or in small lots.

    Most companies that need to liquidate assets, especially inventory, surplus materials, or byproducts of industrial processes, prefer bulk sales. Ideally, they will find a liquidator that can take it all off their hands and get paid up front, while the liquidator takes on the task of finding customers willing to pay enough for the liquidator to make a profit on the transaction.

    Different liquidators may offer different types of liquidation services.