Asset Recovery, also called investment recovery or resource recovery, is the process of maximizing the value of unused or end of life assets through effective reuse or divestment. Both large and small organizations practice asset recovery at some level with the end goal of obtaining the greatest possible return from the asset.
Idle Asset Identification :
We identify the assets that are not put to productive use end up costing money. It is important that these assets be classified as idle by investment recovery personnel. Later, a decision can be made whether to redeploy or divest the asset. Surplus Assets could be in any form, including fixed equipment, mobile equipment, buildings, and land. Idle or Surplus assets can also be identified as either "Capital" Assets or non capital surplus.
Internal Redeployment :
We redeploy an idle asset to another part of an organization is often the most productive use for the asset. Asset redeployment also saves the organization money by eliminating the need to purchase a new asset at current market rates. For effective reuse, another part of the company needs to require an asset of that kind. It must also be practical for the asset to be transferred and deployed at the new location. One form of internal redeployment is cannibalization of usable spare parts from one asset to another.
Surplus Asset Disposition :
Disposition of surplus or idle assets is the process of either selling, scrapping, recycling, donating, or disposing an asset. The process involves removing the asset from an organization's books. When this is done effectively, the organization obtains capital that can be placed back into the business. In addition, a good asset sale produces revenue and boosts profits. Donations also build goodwill and deliver tax benefits. The type of disposition method employed will depend on the type of asset, its fair value, and demand for the asset in the marketplace.
Investment Recovery Specialists :
Companies in the asset recovery business can sometimes be referred to as liquidators or as asset recovery specialists or a similar name. An asset recovery company will purchase the equipment at a discounted price and either resell it for a profit or sell it on behalf of the asset owner for either a commission or a fee.