Asset Purchase Program

Jun 17, 2016 by sherwood 0 comments

Asset Purchase Program

Rather than suffering losses on surplus or under-performing real estate, inventory or equipment, Sherwood’s Asset Purchase Program (APP) locks in price points well above cost before devaluation occurs. Sherwood’s APP allows companies to outsource their costly (and typically ineffective) liquidation effort, maximizing asset recovery results. Sherwood pays more because of our unique approach to remarketing, our cutting edge analytics and our sister high-end marketing and freight divisions that offer savings and create added value.

Sherwood can double or triple ROI compared to internal liquidation departments. Our Trade Finance integrated solutions allow us to buy and optimize the value of owned or leased real estate, slow moving or surplus inventory, capital equipment and even marketing assets like sponsorships.

Companies today lack the internal resources, time and expertise to battle today’s rapidly changing and expanding retail eco-systems. Sherwood can improve results and avoid heavy losses due to annual write-downs, clogged warehouses and higher carrying costs that erode profits.

Our added value Purchasing Agreement lists a few services that Sherwood can provide if we match the cost and quality. They include advertising, marketing, e-commerce, freight & logistics and other services that Sherwood provides. If Sherwood receives the spending opportunities detailed in the Purchasing Agreement, any unused trade credits will be cashed out at end of term. This cash-out guarantee/backstop typically allows clients to book the full sale and avoid losses.

Key features of a successful annualized Asset Purchase Program:

  • Beta test of APP proved Sherwood’s capability to deliver higher payments to Client
  • Client has annual surplus
  • Client has pre-existing budget for marketing & freight services
  • Sherwood is willing to accept shipment of inventory at pre-determined price points thus locking-in higher sale price of inventory for Client, and freezing any fall in value
  • Sherwood pre-buys the Client’s anticipated asset surplus with quarterly true-up
  • The program goal is to secure valuations above cost for problem assets and inventory, create a profitable ROI and lock it in
  • Sherwood is willing to accept immediate inventory/asset shipment to trigger sale/revenue recognition and to reduce carrying costs
  • Customer retains 100% control over where the inventory is sold
asset_purchase_chart

Analytics, Accountability, and Audit; We develop custom KPI’s (Key Performance Indicators) with our Clients and Sherwood’s Certified Audit Program enables a third-party audit to substantiate the results. The result is that we have a transparent media process and guarantee our performance 100%.