Machinery liquidation means realizing the market value of a machine fleet instead of scrapping it — through a sale and a reliable market valuation report. The question arises most often in insolvency proceedings, which is where this page starts; if you’re planning a closure without a proceeding, plant closure is the better page.
When a company files for insolvency, the insolvency administrator takes on the task of liquidating the estate for the benefit of creditors. Machine tools and industrial equipment are often the most valuable part of that estate — and how they’re liquidated determines how much actually ends up with the creditors, net.
Legal framework: machinery liquidation under German insolvency law
The German Insolvency Code (InsO) requires the insolvency administrator, under Section 159 InsO, to liquidate the insolvency estate without delay after the reporting hearing, unless resolutions of the creditors’ assembly stand in the way; for movable assets subject to separation rights that remain in the administrator’s possession, Section 166 InsO governs their specific power to realize them. The administrator must achieve the best possible proceeds — which covers both public auctions and direct sales outside an auction.
A direct sale (asset deal) is legally permitted when the administrator can demonstrate that the price achieved matches market value. That’s exactly what our written market valuation report is for: a documented, traceable basis for the liquidation decision that can be entered into the case file.
Direct purchase versus auction: which nets more?
The most common question is whether a public auction doesn’t net more than a direct purchase. The honest answer: it depends on the machine category — but for a typical manufacturing business, the arguments favor a direct purchase.
| Criterion | Direct purchase | Public auction |
|---|---|---|
| Time to payment | 7–15 working days | 4–8 weeks |
| Price certainty | Known before pickup | Unknown until the auction closes |
| Net commission | 0% to the estate | Depending on the provider, a share of proceeds goes to the agency |
| Legal documentation | Valuation report + invoice | Auction records |
| Confidentiality | Complete | Public listing |
| Risk of no bid | None | Machine remains unsold |
For standard CNC machines (lathes, milling machines, machining centers), our direct offer comes without the risk of an auction falling flat.
For very rare specialty machines with known strong bidder interest (for example, a one-of-a-kind custom build or a prototype), an auction can make sense. In those cases we’ll honestly recommend the path that’s better for the estate — even if that means we don’t buy.
Our market valuation report for the insolvency court
The report we issue after the visit includes:
- A complete inventory of the assets (make, model, year built, control system, serial number)
- A description of the technical condition at the time of the visit
- A market price range based on comparable, current transactions
- A justified approach (individual asset value or lot value)
- Date, author, signature
This document serves the insolvency administrator as a basis for the liquidation decision and as evidence to the insolvency court that the price achieved matches market value. It is not an official, court-appointed expert opinion — for a formal full appraisal we additionally recommend a publicly appointed expert if the proceeding requires it.
Typical machines from German insolvency proceedings
In recent years we’ve supported insolvency proceedings across the following industries:
Automotive suppliers: flexible manufacturing lines with horizontal machining centers (NHX 4000, Grob G550), multi-spindle lathes, assembly equipment left over from e-mobility transitions.
Tool and mold making: high-precision 5-axis machining centers (Hermle C40, Röders RXP500), wire EDM machines (Charmilles, Mitsubishi), precision grinding machines (Studer S33, S41).
Machine shops: pools of lathes (Mazak, DMG CTX, NLX), CNC milling machines of various generations, measuring room equipment.
Plastics processing: injection molding machines (KraussMaffei, Arburg Allrounder, Engel, Sumitomo Demag), extrusion lines, peripheral equipment. The valuation logic differs from classic CNC machines — clamping force, control generation, and shot count are the decisive figures here, see buying injection molding machines.
Steel and metal construction: band saws, cold circular saws, and sawing centers are also included in the market valuation report. Depending on the machine, we either buy them or refer them to a buyer in our network.
Gear and drive technology: gear-cutting machines — hobbing, shaping, and gear grinding machines — are also included in the market valuation report. Depending on the machine, we either buy them or refer them to a buyer in our network.
We know the specific secondary markets for each of these machine categories and can deliver realistic price ranges — not estimates, but values from current transactions.
Process, from first inquiry to payment
Day 1–2 — Initial contact and scheduling: you describe the situation (proceeding underway, machine list if available, deadlines). We confirm a site visit.
Day 2–4 — On-site visit and inventory: our team inventories every asset, documents its condition with photos, and checks the control system. Where needed, machines can be briefly run for inspection.
Day 3–5 — Market valuation report and offer: the report goes to the insolvency administrator in writing, along with our purchase offer at the same time. No commission when we buy directly; whether dismantling, loading and transport are included in the price is stated explicitly in the offer.
Day 5–7 — Agreement, payment, pickup: once the offer is accepted, we coordinate the pickup date and payment method. Payment before pickup — the machines don’t leave the premises until the amount has been transferred or confirmed.
Discreet handling of sensitive proceedings
An insolvency proceeding is a delicate situation for everyone involved. Employees, suppliers, customers — everyone reacts to information that leaks out uncontrolled. We work with complete confidentiality: no public listings of our acquisition plans, no identification of the company in our materials without explicit authorization.
See also: How do I sell machines from a plant closure? — the answer if the business is closing outside an insolvency proceeding.
Request a free consultation for insolvency administrators — complete confidentiality.