Selling Surplus or Used Equipment
Sometimes a project must be cancelled or indefinitely delayed after the major equipment has been ordered. If it is not feasible to cancel an equipment purchase order with the OEM, the owner needs experienced professionals to manage the resale effort. Owners also need sales help when equipment is damaged or otherwise retired from service. The primary value added by Axford Turbine Consultants, LLC, is a dedicated sales force and a deep rolodex from Axford’s 35 years of sales experience. Getting the best possible price means finding the right buyer and knowing how to negotiate the transaction. Since 2001, Axford Turbine Consultants, LLC, has managed the sale of more than 54 turbines and related equipment with a transaction value exceeding $600 million. We have a keen sense of market conditions, including price levels and appropriate transaction terms. Axford can provide assistance to the seller at the negotiating table or, for highly confidential situations, the seller can handle the negotiation privately with the buyer. When representing a seller, Axford’s loyalty is 100% with the seller. Axford will never request or accept any compensation from the purchaser (known as “Buyer’s Premium”). In addition, Axford will not demand exclusivity as a contract condition. The owner can, and should, continue his own selling efforts. Axford is compensated by the seller only if one of Axford’s prospects transacts with the seller.
Appraisal and Valuation
Owners, buyers and sellers sometimes need a professional opinion about the value of a turbine generator. The need can be related to a pending transaction, a tax dispute, or a residual value estimation for a lender. Equipment values go up and down, much like real estate. To perform a valid valuation requires an understanding of fleet size of the turbine, recent transactions for that particular model of turbine, and projected demand during the next few years. Axford Turbine Consultants, LLC, has performed numerous valuation reports for clients seeking a truly independent opinion. The appraisal customarily includes a visit to the job site for visual examination of the equipment and records, as well as discussions with the operators. Axford then provides a written valuation opinion on its letterhead for the client. Axford is prepared to tackle valuation assignments on short notice with turnaround time typically of two weeks or less.
Sourcing assignments often start with a client phone call saying “Help me find _____. “ This can be a complete turbine generator set, a row of turbine blades, a generator, a transformer, an SCR system, or just about any major equipment for a non-nuclear power station. Since 2001, Axford Turbine Consultants, LLC, has acted as a sourcing agent for 18 turbines and related apparatus with a transaction value exceeding $140 million. Finding the equipment requires a sales team that knows the parties who own similar turbomachinery and hold the inventory. This is not a Google search, this is a Rolodex search. Anybody can put together a list of companies that might be prospective sellers and find a phone number for the corporate headquarters. But the senior manager who needs to be reached will rarely return phone calls or e-mails from a stranger. Sourcing requires access to the right people. Axford has established connections with major operators of gas turbine and steam turbine equipment. When representing a buyer, Axford’s loyalty is 100% with the buyer. Axford will never request or accept any compensation from the seller. Axford is compensated by the buyer only if Axford locates equipment that the buyer likes and the buyer proceeds with the transaction.
Forecasting and Market Analysis
Axford Turbine Consultants, LLC, helps customers understand the supply and demand fundamentals that shape the market. To forecast future demand, Axford begins by analyzing past trends from an historical database for gas turbines and steam turbines that goes back to 1980. Orders and shipment history can be understood for every major make and model of gas and steam turbine as well as related concerns such as 1) trends in unit size and simple vs combined cycle plant design; 2) geographic distribution of orders and; 3) competitive market shares. In addition, Axford Turbine Consultants, LLC, provides general business consulting to industrial companies to evaluate self-generation, cogeneration, or other energy conservation opportunities at a manufacturing facility. Large engineering companies often approach an energy audit with a SWAT team that generates a huge report with too much detail at too much cost. Axford’s approach is to quickly point out the low hanging fruit, work up a simple payback analysis, and coach the client on implementation. An equipment solution does not fit into every situation. Sometimes the solution involves understanding how the supply markets for fuel and electricity work together. Axford helps clients prepare for negotiations with fuel and electricity providers and to stimulate competition.