Should I sell my heavy equipment business whole or sell off the equipment?

Owners of crane, demolition, hydrovac and other heavy equipment businesses often face the same fork. One road is to sell the company as a running operation. The other is to sell the machines, by auction or privately, and wind down. Neither is better in general. The right choice depends on what you built, and this page sets out the questions to settle first.

What a sale as a going concern needs

A buyer who wants the business wants more than steel. They look for repeat customers, a crew that will stay, and records that show how the work runs. If the business depends on you personally, start handing off relationships early. Clean books and maintenance files make this route smoother. Our page on what to include in the sale can help.

What selling the equipment needs

Selling machines one by one depends on clear ownership. For each unit, confirm title with your lawyer and ask any lender what it needs to release its security. Check this early with your lien search. Auctions can be quick, but you give up control over the price each machine fetches. Private sales can take longer and need a buyer for each machine.

How each route touches people

A whole sale can keep jobs and customers in place, though staff will want to know what is happening. Selling off the fleet affects staff and clients with work in progress, and what you owe each depends on contracts and employment law. Plan how and when you will tell people, and ask your lawyer what you owe each group.

Questions for your advisers

• Ask your accountant how each route is likely to be taxed for you and your company.
• Ask your lawyer how to handle contracts, staff and open jobs in each case.
• Ask your lender what is needed to release security on the machines.
• Ask a broker or equipment dealer how buyers approach each option, without relying on one view.