Growing a Business Through Asset Acquisitions

As a business surpasses the startup stage and matures into the growth stage, access to resources and assets must increase in tandem to fuel growth plans. A growing business must have ample funds to expand operations, such as introducing new service lines, recruiting new talent and investing in assets.

Acquiring assets, such as equipment or machinery, can supercharge efficiency and increase the capacity of a business to take on more work. Equipment is often the missing link for companies that have the appetite to grow, yet have no roadmap to facilitate this.

Chris Bristow, a Business Debt Expert at Real Business Rescue, looks at why acquiring assets through the auction route can be highly beneficial for growing businesses, including the role of business finance when buying company assets.

The Many Benefits of Acquiring Assets at Auction

The asset auction route is highly cost-effective for businesses in search of assets, new and old, at competitive prices. It is a popular path that helps businesses attain industry-standard equipment, while also restoring life to assets that are functional and continue to serve a commercial purpose.

We look at some of the benefits of acquiring assets at auction and how this can stimulate the growth of a business.

Value for money – Assets sold at auction are priced competitively to drive interest and can therefore present unique buying opportunities. Businesses can buy commercial assets at record prices which is often more affordable over the long term than hire purchase, lease or rent options. The competitive price point may also allow businesses to immediately own assets outright. Businesses in need of a helping hand may turn to asset finance to help facilitate the purchase of company assets.

Supercharge efficiency - By adding assets to a business to streamline the production process and improve efficiency, businesses can substantially save time and money, improve turnaround time and deliver faster service to clients.

Secure ownership – By acquiring assets and owning them outright, businesses have the security afforded by complete ownership, which may also mean unlimited and unrestricted access to company assets. From equipment, machinery and tools, to vehicles, property and intellectual assets, the assets owned by a business ultimately contribute to the overall value of a business.

Value for money - There are financial advantages to buying commercial assets at auction as it’s likely to be cheaper over the long term, compared to hire, lease and rent options. It may also be more tax-efficient to use surplus cash to purchase an asset, which would otherwise be taxable.

Increase business value – If a company acquires an asset, this contributes to the overall value of the business. If a business owner wishes to sell shop, company assets also contribute to the appeal of the business.

Financial security – Company assets can be used as a financial cushion for businesses and can help facilitate a bailout, should the business require an urgent cash boost to replenish cash flow, settle liabilities, subdue creditor pressure or reduce the risk of insolvency. Company assets play a critical role as they provide financial security and can often be realised at any point.

Acquiring Company Assets at Auction  

Acquiring assets at auction supports the circle of life as assets in good shape are reused and matched with a new owner, which can also often mean more affordable prices. Company assets, such as equipment, specialist machinery or assets, can truly shape the success story of a business and stimulate growth.

Stay Updated with Auction News

To stay informed about the latest asset auctions and opportunities to grow your business, create a free account with Auction News. You'll receive tailored auction alerts, industry updates and our weekly digital magazine - helping you buy or sell the right assets at the right time.