The term ‘Asset Recovery’ has different meanings. Any attempt to bring back any asset that has been stolen or exchanged illegally is called asset recovery. However, the attempt to sell any asset that is not needed anymore may also be called investment recovery. Re-using any asset through recycled process is also known as asset recovery. To be brief, asset recovery maximizes the value of a resource.
There are three main parts of investment recovery. They are idle resource identification, redeployment and divestment.
Idle resource identification comes first as far as asset recovery is concerned. It is a fact that nothing can last forever. After a certain period of time, objectivity of an asset comes to an end. Keeping such resource does not provide the client with any positive result. Instead, the client starts losing money by keeping such a resource. Such a resource or an asset is included in the idle asset identification recovery. It is wise to redeploy or take away such assets. Assets included in the category of idle asset identification may be of any form. For example, building materials, unused land, electrical equipment, manufacturing equipment, scrap metal, surplus electronics, still mill equipment etc may be included in idle resource identification category.
The withdrawal and redistribution of resources in an attempt to use them more effectively is known as redeployment. Redeployment is a great tactic if you want to save money for your company. It is far better to redeploy an asset than to buy a new asset. Because it will provide you with the luxury not to buy new resource at current market price. Therefore, redeployment has been one of the most popular tactics of investment recovery by lots of organizations around the world.
Divestment is one of main parts of asset recovery process. When a resource is not worth of being redeployed it should be taken away and replaced with a new asset. Such assets should be sold or donated. By selling such assets you can earn extra revenues. This will certainly provide your organization with extra profit. By donating such resources your organization can earn goodwill. In this way, you can replace your resource with goodwill which is not a bad tactic at all. However, it is also possible to use such resources through recycling process.
There are lots of companies that involve themselves in investment recovery business. They are known as specialists in investment recovery. Their activity varies. Sometime they buy from organizations all the things that are not needed by the organizations anymore. Sometime they sell all these things to other parties on behalf of the organization. Of course they charge an amount for their assistance in selling the parts to other parties.
To conclude, almost all the companies practice asset recovery with a view to getting best possible return from their assets. In today’s highly competitive economic market each and every organization tries their best to increase their revenues or profits as much as possible. They always look for opportunities. The process of investment recovery provides them with such an opportunity to extend their business.