Asset Disposal

Auction has been the traditional method of asset disposal throughout the last decade as a method for liquidating debt against plant and machinery. DMS Davlan have been very successful in auction disposal with over 150 plant and machinery auctions from Western Australia to Far North Queensland, bringing very good results for our customers.

Recently however, there has been a slight shift away from auction as a method of asset disposal for those products which are very market specific and do not appeal to a wide base in the rural sector. As a result, DMS Davlan have been able to successfully implement other methods of disposal, which achieve the same end as auction - the highest price the market will pay for any given item. Such methods include the closed tender system, direct marketing to a known industry base through our extensive customer base and concentrated direct retail selling.

"Successful remarketing hinges on having the right buyers for the products we are trying to sell,” says Richard Skellern, principal of DMS Davlan . "By being flexible enough to conduct an auction in the correct market place, we can assure a better result for our vendors”. This has been evidenced over the years with the auctions carried out by DMS Davlan and the critical timing of these auctions. "It is very difficult to sell a header out of season, or a cotton picker away from the cotton areas so instead, we take the product to the market at the right time of the season to obtain the most buyers and the best price.” It is this type of flexibility and marketing knowledge that give our customers more potential of successful disposal.

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Asset Valuation
As a licensed auctioneer and valuer, DMS Davlan provides clients with written valuations, but more importantly, advice on the justification of the valuation, estimation on any repairs required, estimates on transport and advice on the best method of disposal. Richard Skellern, principal of DMS Davlan is very proud of this point: "Anyone can give a valuation on an asset, however if the valuation is required for legal process or finance for example, our clients are needing more than a price. They need to know the condition of the unit, its saleability and marketability. DMS Davlan use our extensive knowledge gained through sales experience to procure our valuations.”

Our extensive network of suppliers and dealers also can assist us with products that may be of a more specialised nature when it comes to valuations. "A valuation on an excavator with a log harvesting head is not something you will see every day, but through our client base and supplier contacts, we can give our vendor an informed valuation with both retail and wholesale pricing, thereby providing more than one option” says Richard.

"I think our advantage is that we are always out on the bush and we can conduct valuations very quickly for our clients. Speed and accuracy are critical in this process as often times a finance company maybe waiting on a valuation for an approval, this is where DMS Davlan excels.”

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Asset Management
Much of the inventory scattered throughout the dealer's yards in rural Australia is financed and mortgaged to city-based financiers. The auditing and checking of this stock is an expensive and timely procedure for many of the financiers. Recently, DMS Davlan has developed a program whereby we can provide financiers this auditing service. Added to this service is our ability to provide inventory valuations, condition reports and advice on movements to assist these companies manage their risk.

This asset management is also being applied by administration and receivership companies to mobilise plant and equipment and provide full security services in our yards. "Liquidation is an unfortunate part of business today and we have provided a complete asset management service to many of Australia's larger equipment manufacturers and financiers to ensure maximum returns to creditors and minimisation of risk,” says Richard Skellern, Principal of DMS Davlan . "From inventory audits to liquidation through auction, we are able to provide the full service to the creditors.”

It is the speed and accuracy of DMS Davlan that have kept customers coming back time and again. "These situations require tact and sometimes a bit of bush resourcefulness in order to achieve the best result for the creditors” says Richard.

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Risk Assessment and Compliance
Recent legislation changes and a spotlight from Government on a safe workplace and practices has seen DMS Davlan successfully implement a risk assessment program which assists vendors and suppliers comply with this important part of our industry. Increasingly, suppliers and dealers are becoming responsible for the safe operation of the equipment they sell. In the past, suppliers have been able to rely on European and American standards to cover the risk assessment of the machinery they sell. Today however, there is a question mark over wether or not this assessment is adequate to cover the seller for injuries incurred as a result of operation of a machine.

DMS Davlan is well in front of its competitors on this issue and can provide advice and software programs which enable the supplier to implement the standards expected by the regulatory authorities, and minimise the risk associated with the sale of both new and used machinery. DMS use the Plant Safety Manager from Risk Management and Safety Systems to provide this service.

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