Asset loss

Acquiring organizations also need to understand asset health. Information on asset maintenance history and remaining asset lives is key to determining the required ongoing investment. While cash rich companies are now looking to maximize the current economic situation, few will be keen to make a major investment to overhaul an unhealthy asset base. An inability to provide accurate, trusted information over asset status and health can only result in further devaluing of the business.

In this economy it is also essential for every business to demonstrate strong cost control to improve corporate value, and good asset management is key to that process. As the recession has taken a strong hold and capital expenditure capped there has been a growing move to recycle assets and maximize the asset lifespan, from office equipment and IT kit to major pieces of manufacturing equipment.

Indeed, as organizations have relocated manufacturing activity from the US to Eastern Europe and Asia, growing numbers are now actively considering relocating core equipment rather than purchasing new. Those companies that have put in place a strong asset register and management processes are now in a position to create an internal market for buying and selling assets within the group to improve cost control and maximize asset value.