Transforming Idle Capital Equipment into Media Value
A major Food Manufacturer had idle industrial machinery as well as short-coded dairy products. Both types of assets would be valued in secondary markets at significantly less than their assessed value.
Active purchased the machinery and dairy products at approximately three times their market value, paid in Trade Credits to be used for future media.
- Active partnered with a capital equipment resale specialist to assure that the machinery was resold within industry standards.
- Active resold the short-coded product into approved channels (prisons)
- Active executed Dannon’s future media according to their AOR’s strict buying guidelines, including added value.
- Dannon avoided a potential loss on the idle machinery and short-coded product.
- Dannon used the Trade Credits they received in combination with cash to purchase various portions of their future planned media, including National Cable, Unwired and Print.