Britain’s furniture industry is grappling with a harsh reality – surging costs, increased red tape and a stagnant market are putting immense pressure on this traditional sector, forcing many businesses to reconsider their future, says Richard Travis, industrial specialist at BPI Asset Disposal Solutions, who looks at why asset disposal is becoming an increasingly attractive option for furniture business owners, and particularly those nearing retirement and seeking a swift and efficient exit strategy.
For furniture business owners nearing retirement, selling an entire company can be a daunting prospect. The traditional route of selling the business as a going concern often involves lengthy negotiations, complex due diligence procedures, and the potential for ongoing liabilities. This drawn-out process can significantly delay retirement plans and cause unnecessary stress.
Fortunately, a strategic alternative exists – asset disposal. By partnering with a reputable asset disposal specialist, furniture business owners can achieve a fast, efficient, and financially rewarding exit strategy. This allows them to focus on a smooth transition into retirement while maximising returns on their assets.
The benefits of asset disposal
Choosing asset disposal offers several advantages over selling a business as a whole: speed – asset disposal can be completed in weeks, compared to the potentially years-long process of selling a business; maximised returns – asset disposal specialists can accurately value materials, equipment and machinery, often achieving higher returns through online auctions; and streamlined retirement – asset disposal offers a simple, stress-free way to close a business while maximising the value of its assets.
Finding the right asset disposal partner
Choosing the right asset disposal partner is crucial to ensure a successful outcome. Look for a company with a proven track record, a commitment to sustainability and exceptional customer service.
Key qualities include: industry knowledge – understanding the furniture industry ensures accurate asset valuation and effective buyer targeting; marketing expertise – a strong marketing strategy ensures your assets reach a wide audience of qualified buyers; and online auction capabilities – reach a 24/7, global audience, generating competitive bidding and higher returns.
Carving out a new future
London-based Axion Furniture Makers closed its doors recently, due to the challenges facing many in the sector. The decision was made easier by the fact that the owners were looking for an efficient way to exit their business that would also top up their pension pot.
BPI’s industry knowledge and expertise made them the ideal partner for Axion’s needs. They conducted a thorough review of Axion’s assets, meticulously cataloguing and photographing over 70 lots of woodworking machinery and tools. Leveraging extensive industry contacts, BPI reached out to potential buyers specifically interested in high-quality woodworking equipment, ensuring a wider audience and maximising value for Axion’s assets. Following this targeted marketing approach, BPI conducted an online auction.
The efficient five-week process proved highly successful. In the online auction, the majority of the lots sold, generating a total of £17,000 for Axion.
“We are incredibly grateful to BPI for their support during this time,” commented a representative from Axion Furniture Makers. “Their professionalism and expertise made the process of selling our equipment stress-free. We highly recommend BPI to any woodworking business looking to dispose of assets efficiently.”
A smooth transition into retirement
Asset disposal offers a speedier, less complex, and potentially more profitable exit strategy for furniture business owners.
As Axion’s story demonstrates, partnering with a reputable asset disposal specialist can lead to a successful closure, even in challenging circumstances. With the right expertise, furniture business owners can achieve their retirement goals, maximise returns on their assets, and confidently transition into the next chapter of their lives.
