BPI Asset Disposal Solutions offers expert advice on exiting a business efficiently

Richard Travis, Industrial Specialist at BPI Asset Disposal Solutions, examines the competitive pressures facing woodworking businesses and explores the options available to business owners seeking an efficient exit strategy

The UK economy continues to face significant challenges, directly impacting joinery and woodworking businesses. Even after three years, the effects of the COVID-19 pandemic – compounded by additional economic pressures – have forced many business owners to either retire or sell assets in order to repay loans and improve cash flow.

One of the most significant challenges in the woodworking and joinery industry is the rising cost of materials. Between 2020 and 2023, the industry saw significant inflation in material prices, driven by both the pandemic and Brexit. The cost of raw materials, such as timber, has surged – some estimates, including Checkatrade – place the increase as high as 45%.

Higher material costs have squeezed profit margins, even as selling prices have risen, making it increasingly difficult for joinery and woodworking companies to remain viable. N R Burnett Ltd, a traditional timber merchant based in Hull, faced these rising costs along with growing competition from larger operators.

In 2024, the management team made the difficult decision to close the business. The appointed administrator turned to BPI Asset Disposal Solutions to manage the asset sale, selecting BPI’s robust online auction platform and comprehensive start-to-finish services.

The company’s assets included a range of high-value woodworking machinery, vehicles, timber stock, tools and other equipment. The challenge was to maximise returns while ensuring an efficient disposal process. The auction attracted a diverse range of bidders, from established industrial professionals upgrading their equipment to new start-ups entering the woodworking sector.

Planning for retirement

For business owners fatigued by market challenges and considering retirement, online auctions managed by asset disposal specialists offer an effective way to convert assets into cash – potentially boosting pension funds. These specialists handle the entire process, including valuation, cataloguing and marketing, alleviating much of the stress often associated with selling a business as a going concern, which can be time-consuming and yield less-than-ideal outcomes.

This approach allows business owners to optimise their exit strategy, freeing up time to focus on the next chapter while ensuring assets remain in use, thus benefitting a new generation of woodworkers. It also aligns with circular economy principles, as asset sales extend the lifespan of machinery and reduce waste.

A fine furniture company in Oxfordshire recently turned to BPI to sell its entire workshop contents following the owner’s decision to retire. The company had built a strong reputation for craftsmanship and expertise in the woodworking industry. Rather than opting for traditional selling routes, the owner leveraged BPI’s established auction platform and extensive network of potential buyers.

The process involved a comprehensive valuation and cataloguing of 70 lots, with the auction generating over £17,000 – exceeding the business owner’s expectations by an impressive 30%.

The sale was completed swiftly, with the auction running for just two weeks. BPI’s team handled collections in a single day, ensuring a smooth site clearance process. A representative from the company commented: “Thank you to the BPI team for making the business sale so seamless and easy for us. It was always going to be a challenging process, but you really did make everything very straightforward – from the valuation and cataloguing to the auction itself and collection. It all worked brilliantly.”

The benefits of specialist asset auction platforms

Online auction platforms operate 24/7 and attract a global audience of buyers, many of whom are willing to pay competitive prices for high-quality woodworking machinery. Asset disposal specialists play a crucial role in maximising the auction’s reach by targeting the right buyers, often securing higher returns than traditional selling methods.

A key advantage of working with asset disposal specialists is the ability to sell woodworking and joinery machinery directly from the business site, as demonstrated in the examples here. This eliminates logistical costs, streamlines the selling process and removes much of the hassle for the seller.

Whether selling business assets due to liquidation or retirement, asset disposal specialists provide end-to-end support – from initial consultation and cataloguing to auction management and post-sale logistics, which ensures a seamless and stress-free experience.

For more information on BPI Asset Disposal Solutions, visit www.bpiassetdisposal.com.