6 Steps to Successfully Close Your Facility 

There comes a time in every Fab facility’s lifetime where the equipment no longer works, the product is no longer being produced or the company reaches a point of financial distress. Although few imagine the day that the facility’s lights must be turned off, it is more common to close a fabrication facility than you may think. When planning for the closure of your facility, there are 6 key steps to keep in mind for a successful shutdown. 

1) Plan Early

If you can, it is beneficial to plan ahead for the distribution of your facility’s assets. This way, you can create the most opportunities to recoup the most value for your equipment.

2) Take an Inventory of Your Assets

When the time comes that the closure is announced, many facility managers aren’t even sure of all the assets that are even in their Fab facility. If you sense that your Fab may have to face closure, it is smart to consult a third party to provide an inventory and valuation of your assets. This allows you to itemize your equipment and gain an understanding of what your assets could be worth to buyers. 

3) Understand the Steps for Closure

a. Decontamination 

b. Removal

c. Removal

d. Inspections

e. Shipping

f. Facility Cleaning

4) Ask Yourself What Support You May Need

Begin to brainstorm the resources that you will need to complete this closure. Who will be responsible for the closure? Do you need to contact a third party to appraise and sell your assets? Do you need to acquire permits? How long will be the duration of the closure? Ask yourself specific questions to understand what you may need for closure. 

5) Create a Shutdown Timeline

Establish a firm timeline for your team to follow to ensure a seamless shutdown. Give yourself enough time to complete all of the proper steps and find a third party to assist with the closure.

6) Identify the Correct Platform for Your Assets

You want to ensure that you recoup maximum value for your assets.   It is advantageous to identify a well-connected platform that can combine effective marketing techniques with market knowledge to find the perfect buyer.

Although this may not be what you initially planned for your Fab facility, following these steps can allow for a seamless closure. Planning ahead may allow you to arrange a private treaty deal for your assets, giving you the power of pricing and negotiation. If you have any questions, or would like personalized advice when it comes to private treaty or auctions, feel free to reach out to us at inquiries@fabexchange.com.

Equipnet. “Site Closures and Projects.” EquipNet, www.equipnet.com/investment-recovery-solutions/site-closures-and-projects/.
McDermott, Andrew. “The Manufacturing Shutdown Checklist Firms Need (but Aren't Using).” QuickBooks, 26 Nov. 2019, quickbooks.intuit.com/small-business/coronavirus/resources/manufacturing-shutdown-checklist/. 

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