Also known as investment or resource recovery, asset recovery usually refers to the process of using effective reuse and divestment in order to maximize the value of unused and end-of-life assets. The term is also used for the process of recovering assets that have been stolen, disposed of, and misappropriated or taken wrongfully from the actual and rightful owner.
Asset recovery services, therefore, encompass a broad range of services provided for recovering such assets along with services for product repair, product sales, life-cycle management and liquidation of excess inventory, refurbished items, and equipment that are returned at the expiration of a lease.
The entire process of asset recovery has 3 main elements – identification, redeployment, and divestment. Identification refers to the process of identifying and classifying the assets that are no longer productive. To make a decision regarding redeployment or divestment, it is important to identify the unproductive or idle and surplus assets. Such assets can be fixed equipment, land, buildings, or mobile equipment.
Redeployment, as the name suggests, refers to redeploying the idle assets in another part of the enterprise that requires them. Redeployment of asset is considered the most productive use for the particular asset and it also saves resources of the company.
If redeployment is not possible or practical, then the idle or surplus assets are divested or disposed of. This can be done by selling, donating, recycling, or disposing the asset. The particular method employed for this purpose will depend on the type of asset and its value and demand.
By disposing the idle asset, the company can get capital or revenue that can be utilized in the business. Even in the case of donations, the company can acquire goodwill along with tax benefits, although no revenue or earning accrues to it.
Nowadays, asset recovery services are offered by several companies. All the stages of asset recovery are taken care of by these companies. They help businesses manage the end-of-life processes of their assets, especially of their hardware and IT assets like old, unused computers, monitors, printers, etc.
Disposal of such assets presents many problems nowadays, due to the stricter EPA compliance rules and the issues related to data security and privacy. For example, before disposing or selling computers, the company has to make sure that all sensitive data stored in them is completely erased. Asset recovery service providers take care of these issues. While meeting all governmental, environmental, and third-party compliance standards, they can help businesses maximize the value of their assets.
By availing asset recovery services, businesses can carry on with their regular business operations and concentrate on critical business operations without worrying about the management of their old, idle, and surplus assets. For all such reasons, the asset recovery services has emerged as a unique business model in the recent times.