What is it?

What is industrial asset recovery and sale?

Forced liquidation: 30-50% of market value. Orderly liquidation with professional remarketing: 75-90%. The difference is the process, not the asset.

In insolvencies, restructurings and cessations of activity, schedule pressure tends to force quick liquidations that destroy recoverable value. A well-structured operation — prior valuation, intelligent lotting, multichannel marketing and qualified buyers — can double or triple the final result without changing a single asset.

At Capital Appraisal we manage complete structured liquidation processes: an initial valuation under the RICS Red Book (with a separate calculation of OLV and FLV), technical preparation of the assets, a multichannel remarketing strategy (specialised industrial auctions, direct sale to qualified buyers, a global network), logistics coordination of dismantling and transport, and auditable phase-by-phase reporting of results.

Glossary · acronyms and technical terms
FLV — Forced Liquidation Value
Forced liquidation value: the price expected in a quick sale under time pressure (typically 30-90 days), without preparation, with a single or few buyers. It usually sits between 30% and 50% of market value.
OLV — Orderly Liquidation Value
Orderly liquidation value: the price expected in a managed sale of the assets within a reasonable period (usually 6-12 months), with prior preparation and qualified buyers. It usually sits between 60% and 85% of market value.
REO — Real Estate Owned
An asset recovered by a financial institution following the enforcement of collateral. An industrial REO portfolio includes warehouses, machinery and fleets that the bank needs to value and resell.
RICS — Royal Institution of Chartered Surveyors
International professional body founded in 1868 in the United Kingdom under Royal Charter, regulating valuation firms in more than 140 countries. Capital Appraisal is a firm regulated by RICS under the Valuer Registration Scheme (VRS), with periodic audits of processes, ethics and independence.
RICS Red Book — RICS Valuation – Global Standards
Global methodological standard published by RICS for professional valuations. It defines the bases of value (Market Value, Fair Value, FMV, OLV, FLV, etc.), the approaches (cost, market, income), the report structure and the independence requirements. It is the reference required by corporate banking, Big Four auditors and European regulators. It operationally implements the IVSC's IVS.
What is it for?

Five situations in which you need this service

  1. Close a plant or cease industrial activity

    When a company closes a site or ceases a line of activity, the production assets must be liquidated. An orderly liquidation (vs. a forced one) can double or triple the final result — and that almost always depends on the process.

  2. Sell REO assets for financial institutions

    Enforced collateral (machinery, vehicles, buildings) enters the bank's REO portfolio. We manage the full remarketing and sale cycle to shorten the holding period and recover value.

  3. Renew the production base in corporations

    When an industrial corporation modernises its production base, the replaced equipment usually has significant market value. We structure the sale so the transition happens without interrupting operations.

  4. Realise the estate of an insolvency administration

    Insolvency administrators need to liquidate assets in compliance with the insolvency process: prior valuation, justification of the sale strategy, auditable reporting and documentary traceability.

  5. Manage the exit of a special-situations fund

    When a distressed fund has invested in industrial assets and needs to exit, we optimise the schedule with visibility over real secondary-market demand and a global network of buyers.

What will you receive?

The deliverable

Beyond the valuation report, we manage the complete operation: a liquidation plan with an estimate of the recovery, execution of the sale and auditable reporting of results.

  • Liquidation plan with recovery estimate
  • Secondary market report per asset
  • Complete management of the sale process
  • Results reporting and financial traceability

Typologies we recover

  • Machinery from companies under restructuring
  • Assets recovered by financial institutions (REOs)
  • Vehicle fleets undergoing fleet renewal
  • Spare parts stock and auxiliary assets
  • Complete production lines

Methodology

Orderly Liquidation Value (OLV) valuation

Forced Liquidation Value (FLV) valuation

Analysis of demand in the secondary market

Multi-channel remarketing strategy

Compliant with the RICS Red Book

Capabilities

  • Structured vs. forced liquidation — comparative analysis
  • Multi-channel B2B remarketing specialised by sector
  • Industrial auctions with an international buyer network
  • Coordination of logistics, dismantling and transport
  • Document management of the transfer

Sectors

  • Companies under restructuring or insolvency
  • Insolvency administrators
  • Special situations and distressed funds
  • Companies renewing their asset base
  • Financial institutions with recovered assets
Common questions

Frequently asked questions

What does the asset recovery and sale service include?
End-to-end management of idle or recovered assets: technical valuation, divestment strategy (direct sale, auction, structured liquidation), specialised B2B marketing, removal logistics and documentary management of the transfer.
Do you work with assets from companies in insolvency?
Yes. We work with insolvency administrators on the realisation of the estate, providing independent valuations, sale strategies that maximise the return for creditors and operational execution with the necessary legal safeguards.
What commission or cost does the service have?
Two models: a fixed fee per project (for valuation and advisory engagements) or a commission on the sale amount recovered (for sale mandates). It is agreed case by case according to volume and complexity.
What is the difference between OLV and FLV, and when should each be applied?
The Orderly Liquidation Value (OLV) is the value expected in an orderly sale with prior preparation and a reasonable timeframe (typically 6-12 months) — usually 60-85% of market value. The Forced Liquidation Value (FLV) assumes a rapid sale (30-90 days) with no preparation — usually 30-50% of market value. The bank's risk committee uses OLV to set the LTV; the insolvency administrator uses FLV when the timetable is unavoidable.
What is your international network of buyers like?
A global network of industrial buyers qualified by sector (metallurgy, CNC machinery, automotive, packaging, energy). Specialised industrial auctions, direct B2B sales and proprietary channels. The active network makes it possible to close cross-border transactions within compressed timeframes without sacrificing recovery value.
Do you also manage decommissioning and transport?
Yes. The transaction is closed on a turnkey basis for the client: we coordinate technical disconnection (electrical, pneumatic, hydraulic), on-site dismantling, packing and transport to the buyer's destination. This removes operational risk from the seller and reduces the friction of the transaction.
Tell us what you need

Step 1 / 7: What situation is driving the operation?

What situation is driving the operation?

The context determines the strategy: orderly liquidation or sale to the market.

Need to know the real value of your assets?

Request your valuation. First contact, scope and fees with no obligation, under the RICS Red Book standard.

No obligation · RICS-regulated firm · European coverage