Topping up a pension pot: An 84-year old building firm generates £92,551 from retirement asset sale
The owner of a family-run building firm based on East Yorkshire recently took the decision to retire after eight decades of successful trading.
Rather than selling the business as a going concern, they chose to sell the entire assets with BPI to top up their pension fund.
The sale featured over 200 lots including plant, machinery, vehicles, tools and more. Having worked with BPI on several sales over the last few years and received an exemplary service, it was an easy decision for the owners to commission them for their retirement sale.
The Challenge
Established in the 1930’s, this family-owned building company has contributed to countless major developments throughout the East Riding of Yorkshire. Core to their approach was using well maintained plant and machinery, along with excellent workmanship to provide their customers with a high-quality finish.
Once the owners had made the decision to retire, they faced two choices: sell the business as a going concern, although they had reservations that it could take years to complete this process; or divest the assets, which usually takes just a few weeks.
The owners had looked after their assets and carried out regular maintenance. They were looking to maximise sales proceeds, which could then be transferred from the business into their pension pot.
The Solution
The speed and efficiency in which BPI can sell assets persuaded the owners to go with this option. They also had an overwhelmingly positive experience with BPI over the years, having used them multiple times for selling a range of underutilised assets.
One of the main benefits of selling business assets is that it can be completed in as little as five weeks or less. With a strong demand for used plant and machinery currently, it is also a profitable way of funding a retirement fund.
BPI catalogued and photographed each asset and made it ready for the online marketplace. The vendor handled collections over a week’s period from their site. Some of the most notable lots featured in this sale were:
1. 2004 Thwaites 5 Tonne Diesel Dumper Truck with Swivel Bucket
2. 2002 Volvo 281 EC25 2500Kg Excavator
3. 2008 Bomag BW120 Articulated Vibrating Roller
4. JCB 535 / 125 2005 3500kg Capacity Telehandler
5. 1996 JCB 185-65 Fastrac Intercooler 4WD Tractor
6. 2001 JCB SiteMaster Plus 1000 Tonne Wheel Excavator
7. 2005 JCB JS130 13 Tonne Tracked Excavator
The ResultsThe entire sales process was completed in just four weeks – an impressive turnaround time for anyone looking to retire!
The hammer total was £92,551, which exceeded the owner’s expectations. The reserves on plant alone came to £54,000 and it achieved around £70,000 in the sale, nearly 30% over expected.
The success of the auction was largely due to the plant’s excellent quality and maintenance, having had only one owner, along with awareness raising efforts by the BPI team and their extensive database of potential buyers.
Opting for an asset sale was a logical choice for this owner due to its efficiency and reduced complexity, especially given the challenging and emotional nature of closing a business. Many of BPI’s clients are often eager to finalise the process as promptly as possible once they decide to exit.
Richard Travis, Sector Specialist at BPI, said: ‘It was a pleasure to conduct a sale for such a longstanding and well-trusted vendor. With over 200 lots of high-quality plant, machinery, vehicles and tools, it was a privilege to catalogue assets that had been so meticulously maintained despite their age. If your business requires similar services or would like more information, please get in touch today!”
Customer testimonial
The owner of the building firm said: “I am delighted with the results of the sale, and I was impressed that the sale exceeded my expectations. BPI handled the whole process with speed and professionalism, and I would highly recommend them for anyone who is thinking about retiring or closing their business.”
