Capital Equipment
Challenge
An international spirits company (Client) had a manufacturing facility in Puerto Rico. The government offered a one-time tax incentive for the Client to upgrade their capital equipment. As part of the upgrade, the Client had to dispose of its existing bottling equipment; the fair market value of the equipment was less than the book value, which would have generated a significant loss.
Solution
Anchor paid the Client the full book value in the form of Trade Credits. As part of the transaction, Anchor handled the dismantling and resale of the capital equipment for the Client.
Execution
The Client purchased National Cable Television, Local Television, Out of Home, and Digital Media through Anchor. Media was delivered to the existing guidelines, specifications, pricing and added value developed by the Client’s global Media Agency.
Benefits
- The client was able to mitigate the loss associated with the disposition of the bottling equipment.
- Anchor handled the disposition of the equipment, providing additional benefits in terms of resource allocation and cost.
- Media was delivered adhering to the established media buying strategy and pricing developed by the Client’s media agency.