New work arrives after the downsizing decision

Topic
Downsizing and consolidation
Reading time
3 minutes
Last reviewed
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  1. List what can still change
  2. Compare credible ways to accept the work
  3. Record why the decision changed, or why it did not

New work arriving after a downsizing decision deserves a fresh assessment. It does not automatically justify reversing the plan. Start with the credibility and requirements of the opportunity, then establish which decisions remain open.

A request for a price, a conditional award and a confirmed order are different levels of evidence. Record what the customer has actually committed to and what the business would have to promise in return. Avoid rebuilding a larger operation around an optimistic interpretation of an enquiry.

List what can still change

In a fictional business, notice has been given on one property, some equipment has been sold and another group remains available. The owner receives an enquiry for work similar to the activity being reduced.

The decision note should separate:

  • Commitments already made, with their actual terms and responsible advisers.
  • Resources still available, including people, records and support.
  • Reversible steps that have not yet been instructed.
  • External options that need checking.
  • Customer requirements and uncertainties that could change the decision.

Do not assume a sale can be undone or a premises arrangement restored. Establish the real position with the people responsible for those commitments. The costs and permissions may be quite different from those in the original business.

Compare credible ways to accept the work

The smaller operation might be able to handle the order within its agreed scope. Alternatively, part of the requirement might be met externally, the delivery promise might need agreement, or the business might decline the work. Each option needs an actual capacity and commercial assessment.

Use the combined capacity questions rather than counting the machines that remain. The necessary specialist, inspection route or material supply may have changed even if a suitable machine is still present.

If external provision is proposed, investigate it through the outsourcing readiness guide. Do not promise the customer's date before the supplier's relevant capability and availability have been established.

Record why the decision changed, or why it did not

Compare the opportunity with the smaller-business brief. A one-off job may be attractive without supporting a permanent change in premises or staffing. Conversely, credible continuing demand may justify reconsidering steps that remain reversible. The evidence should determine the scale of the response.

Write down the decision, its assumptions and who can authorise the resulting commitments. Include the effect on existing customers and the work already accepted. New business should not quietly displace promises the smaller operation has already made.

Tell UK Auction Group promptly if a changed decision affects equipment already being discussed for sale. Confirm the actual position before assuming an item can be withdrawn or retained. Keep the current surplus scope aligned with the authorised business plan so that everyone works from the same decision.

Downsizing and consolidation

Sources

This guide is general information and education only. Legal, tax, employment and safety decisions may need a qualified adviser who knows your situation. Read the disclaimer.

Releasing surplus equipment?

UK Auction Group surveys the surplus, values it item by item and runs the sale around your operation, so the working site keeps working while the surplus is sold and collected.

Send a list of what you have, where it is and your deadline. Decisions that are still open can be included.

Surplus asset disposal after mergers and restructuring Contact UK Auction Group

Business Closure Guide is part of the UK Auction Group portfolio.

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