SURPLUS EQUIPMENT LIQUIDATION FOR A SOLAR COMPANY
$530,000 Raised Within One Month Via Surplus Asset Remarketing For A Developer Of Solar Panel Technologies
Since 2017, the solar power industry has been in a constant state of innovation. A developer of solar panel technologies needed to raise an additional $300,000 in capital to continue R&D on their solar technologies as well as cover the company’s expenses.
Understanding that traditional venture capital fundraising can take from six months to a year, the company’s time horizon was much shorter. Excess Logic quickly remarketed the idle assets in the most expeditious and effective way. This would allow the company to receive the working capital it desperately needed without having to dilute the company by issuing equity to a third party.
Excess Logic, in cooperation with one of the largest online R&D equipment auction companies, organized an auction for all of the client’s idle surplus equipment.
•To recover maximum value, the auction was organized at the client’s facility which eliminated transportation costs.
•The surplus equipment was cataloged, pictured, labeled, and appropriately described to get maximum exposure in the marketplace.
•The auctioneers advertised the day of the online auction via social networking as well to their private network of potential buyers.
Within three weeks, all of the client’s surplus equipment was successfully sold at auction, picked up, or delivered to the buyers.
Within 45 days, Excess Logic and the auctioneers remarketed everything and raised $530,000. Once all the surplus equipment was picked up or shipped to the buyers, the client relocated the rest of their R&D equipment and team to a smaller facility saving them $50,000 per month in overhead costs. As a result of the detailed execution plan and marketplace connections available through Excess Logic, the client raised almost as twice the needed funds targeted. In addition, because of the relocation to a smaller facility, the client is also saving $600,000 a year on rent with a total annual savings of $1.13 million revolving around this one project with Excess Logic.