Is Buying Used Forklifts Worth It? Find Out Here

Forklifts are a common necessity of almost every warehouse, building site, or construction area. Forklifts are one of the most durable vehicles that you can find on the market today – simply because of what they are made for. They can handle tough working conditions day in and day out for years with no trouble at all. If cared for, forklifts can be in good operating condition for up to ten years. Over time, machines wear down and it’s time to upgrade. If you require a new forklift but don’t have the budget for one outright – purchasing used or pre-owned is a great option. Forklifts are readily available on the market, especially if you are looking for a pre-owned model. So, is buying used forklifts worth it? In this article,  we’ll discuss the pros and cons of buying used forklifts.

Pro: Used Forklifts Are Cheaper And Many Great Deals Can Be Found

If you are looking for a forklift but don’t have the budget for one, purchasing a pre-owned machine is a good option.  There are many used forklift models available on the market at a fraction of the cost of buying new ones. Some companies may even offer to sell or lease their used forklifts as an alternative to scrapping them outright as they still have good life left in them. Some websites aim to simplify the buying process by matching you with dealers near you as well as those that are delivering forklifts all across the country, based on your preferences. This way you can easily get in touch with a reputable dealer and make a deal for your machine.

Con: Used Forklifts Have A Higher Risk of Breakdowns And Malfunctions

As compared to new forklifts, used ones have a higher risk of breakdowns and malfunctions. As time passes on, new parts wear out and need to be replaced just like any other machine on the market. Sometimes these parts may not be readily available on the market anymore which could result in long downtimes until they are found or ordered from overseas suppliers. You will also have to consider that if something breaks down on a used forklift that there is no warranty from the manufacturer versus a brand new one which would come with a warranty. In addition, while some used forklifts may be available for sale with a warranty, many of these manufacturers will not cover the machine’s parts if they are defective.

Pro: Used Forklifts Are Reliable And Can Work Just As Well As New Ones

Another great benefit of purchasing a used forklift is that they are reliable and function just as well as brand new models. These machines were made to last for years without issues, so even if it has been in use for quite some time chances are it’s still good to go. Many forklifts that have been on the market for years will still be able to carry the same weight capacity as their newer counterparts. With the proper care and maintenance, these machines can be as good as new. Just make sure you have the mechanics check it out before you buy, so that you know if anything needs to be fixed. You should always do your research and speak with a forklift dealer before you purchase to ensure that you get the most out of your money.

Con: Used Forklifts Have A Lower Resale Value Than New Ones

One of the cons associated with buying used forklifts is that they have a lower resale value than brand new machines. This is especially true if you are purchasing directly from a manufacturer or dealer, as opposed to online through websites. If you plan on reselling your machine at a point in time to purchase a new model, be sure that you will get more money out of it when selling it privately versus going through another dealership or manufacturer – this way you can recoup some of the investment cost from your initial purchase. The amount of depreciation depends on how much mileage was on the machine as well as its overall condition.

Pro: You Know What You Are Getting When Purchasing Used

Another great benefit of purchasing used forklifts is that you can be sure of what to expect when making your purchase. If you are buying directly from the manufacturer or dealer, then chances are they will run a diagnostic check on the machine before selling it to you. This way you know if anything needs repairing and whether it is covered under warranty or not. Most dealerships do not want their customers having issues with their equipment, as this could cause them to lose business from dissatisfied buyers. Also, most used forklifts still come with a standard warranty which covers certain parts for one year or more depending on how long the machine has been in operation at the dealership.

While buying a used forklift may have its cons, it is highly dependent on the situation. If you know what to expect and how the system works, there’s little reason why you shouldn’t consider buying a used machine instead of a brand new one. It will cost less, thus creating more money in your budget for other necessary equipment or improvements. So if you are looking for a reliable machine to make your business run smoother, used forklifts are usually the right way to go.

Eversheds Sutherland Advises NorTex Midstream Partners

NorTex is an independently owned Houston based midstream solutions provider. We currently own and operate high-deliverability, multi-cycle natural gas storage facilities in strategically-located areas. NorTex’s facilities rank as the second largest portfolio of natural gas storage assets in North Texas.

Eversheds is pleased to announce that it is representing client Castleton Commodities International LLC in its sale of NorTex Midstream Partners, a Houston-based natural gas storage and transportation company, to private equity firm Tailwater Capital.

Founded in 2007, NorTex provides revenue optimisation and asset reliability solutions for utilities and power generation facilities in North Texas through strategically located natural gas storage and transmission.

The Company operates the largest portfolio of non-utility gas storage facilities in North Texas. NorTex’s asset base includes 36 Bcf of depleted reservoir working gas capacity, 83 total miles of natural gas transportation pipelines, as well as the Tolar Hub – the largest natural gas hub in North Texas.

NorTex’s storage facilities have operated consistently for nearly 60 years, serving as critical infrastructure for the greater Dallas-Fort Worth market.

CCI is a global energy commodity merchant with integrated businesses focused on marketing, merchandising, and trading commodities, and the ownership, operation and development of commodities-related infrastructure and upstream assets.

Eversheds Sutherland Overview

As a global top 10 law practice, Eversheds Sutherland provides legal services to a global client base ranging from small and mid-sized businesses to the largest multinationals, acting for 75 of the Fortune 100, 68 of the FTSE 100 and 113 of the Fortune 200.

With more than 3000 lawyers, Eversheds Sutherland operates in 68 offices in 32 jurisdictions across Africa, Asia, Europe, the Middle East and the United States. In addition, a network of more than 200 related law firms, including formalised alliances in Latin America, Asia Pacific and Africa, provide support around the globe.

Eversheds Sutherland provides the full range of legal services, including corporate and mergers and acquisitions; dispute resolution and litigation; energy and infrastructure; finance; human capital and labour law; intellectual property; real estate and construction; and tax.

Global Pandemic Slows China Deal Making Efforts in Year 2020

Deal making is a mutually binding contract or communication between two or more parties who want to do business. The deal is usually carried out between a seller and a buyer to exchange items of value such as goods, services, information, and money.

The global coronavirus pandemic has so far not triggered a Chinese buying spree of distressed assets but further slowed the pace of outbound acquisitions by Chinese companies in 2020.

According to Baker McKenzie’s 7th annual analysis of Chinese outbound investment trends, conducted in partnership with Rhodium Group, completed Chinese outbound mergers and acquisitions totalled just $29 billion in 2020, down almost half from $53 billion in 2019 and a record high of $139 billion in 2017. This is the lowest figure since 2008. Worldwide, only completed Chinese acquisitions in Latin America in 2020 kept pace with the previous year.

Adding greenfield investment to completed mergers and acquisitions, North America and Europe attracted a combined total of $15.2 billion of Chinese FDI. Completed investment in North America outpaced completed investment in Europe for the first time in five years, fuelled by the completion of several billion-dollar transactions. Investment in Europe was more fragmented and consisted of smaller transactions spread across geographies and industries.

All other regions of the world also saw declines in Chinese mergers and acquisitions in 2020 compared to 2019, except for Latin America where completion of a number of energy and utilities acquisitions announced in 2019 in Brazil, Chile, and Peru kept year-over-year activity flat compared to the previous year. Acquisitions in Asia fell by a third to $7.1 billion.

After the hurricane

China’s reintroduction of outbound investment controls, increasing regulatory scrutiny in many parts of the world over Chinese investment, geopolitical tensions, and the COVID-19 pandemic have all created headwinds for investment in recent years. But improving political and macroeconomic conditions seem likely to change this downward trend for Chinese investors in this year. The mergers and acquisitions pipeline remains low in early 2021 but China’s favourable macroeconomic conditions, a more predictable regulatory setup abroad and a less contentious geopolitical environment could help increase deal appetite and support a rebound in Chinese deal making globally, as well as continued growth in investment into China.

The drop in completed Chinese outbound mergers and acquisitions in 2020 stands in contrast to mergers and acquisitions in the other direction. Foreign mergers and acquisitions into China rebounded strongly in 2H 2020 and reached full-year levels similar to 2019. China’s relatively early and rapid recovery from the impacts of COVID-19 have made it an attractive target for foreign investors looking for near- and intermediate-term economic growth.

North America: investment edges up

In 2020, Chinese investors completed $7.7 billion worth of deals in the United States and Canada, up from $5.5 billion completed in 2019. This came even as regulatory scrutiny and tensions with China were elevated in both countries. California, Ontario, Delaware, North Carolina, and Massachusetts were the North American regions seeing the most Chinese investment.

Entertainment, health and biotech, and natural resources were the top sectors in North America. Billion dollar deals like Tencent’s stake in Universal Music and Zijin’s stake in Canada’s Continental Resources drove high industry concentration in North America in 2020.

Canada accounted for a larger share of total Chinese FDI in North America than in previous years, reflecting momentum in mining deals and persistently low US investment.

Chinese companies continued to make major asset divestitures in North America in 2020. For example, Platinum Equity agreed to acquire Ingram Micro from HNA for $7.2 billion in December 2020. And in September, PetroChina dissolved its Alberta shale gas joint venture project with Ovintiv after outing up $2.2 billion for a 49.9% stake in the project in 2012.

The United States attracted more greenfield investment from China in 2020 than Canada. However, total Chinese greenfield investment in the United States was still modest at around $700 million. The biggest greenfield deals in the United States included expansions of existing US footprints for companies like Haier-owned GE Appliances, Fuyao Glass, and Geely-owned Terrafugia.

Chinese companies nearly halve investment in Europe

Completed Chinese FDI in Europe continued its downward trajectory in 2020 to $7.5 billion from $13.4 billion in 2019, registering a lower total than in North America for the first time since 2016. Compared to North America, Chinese mergers and acquisitions in Europe targeted medium-sized targets across a broader spectrum of industries. Chinese greenfield activity in Europe in 2020 was more robust than in North America, with nearly $1 billion in completed investment during the year. There were more midsized transactions in Europe dispersed across industries such as real estate and hospitality, automotive, and energy.

As with investment in North America, outbound capital controls and increased scrutiny of Chinese investment in host countries presented headwinds, as did the coronavirus pandemic. For example, FAW Group discontinued talks to acquire Italian truck maker Iveco for €3 billion during the year, with FAW citing the pandemic as a factor in its decision.

Germany, France, Poland, Sweden, and the United Kingdom received the most investment. Investment levels in Germany reverted to the roughly $2 billion normal range typical before 2019. Chinese investment in France mounted a comeback in 2020 after falling precipitously in 2019 thanks to a few major completed acquisitions. Investment in Poland focused on a single major warehouse portfolio acquisition, while in Sweden there continues to be sustained Chinese investment above historical averages.

With the uncertainty of Brexit, persistent Chinese restrictions on outbound transactions in real estate and other service sectors, and increasing tensions with China, the United Kingdom fell to the fifth among European countries this year with only about $427 million of investment through a few smaller completed mergers and acquisitions like Jingye Group/British Steel. But a major billion-dollar Huawei greenfield R&D investment announced in June suggests Chinese firms are still interested in the United Kingdom and will bolster future totals if it comes to fruition. Levels of Chinese investment in Italy, Ireland and the Netherlands also fell to very low levels.

Compared to North America, Chinese mergers and acquisitions in Europe targeted medium-sized companies across a broader spectrum of industries. The top deals by investment size included targets like a warehouse network in Poland and a few other Central European nations, Germany’s Steigenberger Hotels AG, France’s Asteelflash, National Electric Vehicle Sweden, and France’s Maxeon Solar Technologies.

EU-China Investment Deal

The proposed CAI Deal will facilitate minor additional opening of the European Union market to Chinese investors. The European market was already very open to Chinese and other foreign capital. The CAI commits the EU to further open its energy sector, with the focus on retail and wholesale, but excluding trading platforms.

The CAI will not limit European Union member states in deploying defensive measures including FDI screening, legislation to address subsidy distortions in the Single Market, the adoption of a more restrictive procurement regime and its push to reduce risks related to 5G.

Outlook brightening?

Additionally, China’s current account surplus ballooned in 2020 as global travel halted Chinese overseas tourism spending while Chinese exports recovered before many other nations impacted by the coronavirus pandemic. This has put appreciating pressure on the renminbi and is creating an opportunity for China to allow more capital outflows, including outbound mergers and acquisitions.

Clifford Chance advises KKR on €1.5 billion bolt-on acquisition

Telxius has agreed to acquire, from Telefonica’s subsidiary in Germany (O2 Deutschland), circa 10,100 mobile sites in Germany for €1.5 billion. The deal also includes a built-to-suit undertaking by means of which Telxius will build 2,400 new sites in Germany in the next four years so that O2 Deutschland can rapidly scale its tower footprint to meet existing obligations with the German government.

The €1.5 billion consideration will be mainly funded by a capital increase of Telxius to be subscribed by its existing shareholders. In 2017, KKR acquired a 40% stake in Telxius, Telefónica’s global telecommunications infrastructure company. The Spanish telecom giant retains an indirect controlling stake in Telxius, through a partnership with Pontegadea (Amancio Ortega’s investment platform).

The Clifford Chance multijurisdictional team advising KKR was led from Madrid and Frankfurt by Corporate partners Javier Amantegui, Frederik Mühl and Samir Azzouzi and senior associate Jorge Martín Sainz, and included advising on: (i) Spanish law matters by Daniel García and Laura Geli, from Corporate; Rodrigo Uría and Juan Puras, from Finance; and Jaime Almenar and Octavio Canseco, from Regulatory; (ii) German law matters by Gerd Hegele, from Corporate; Dennis Blechinger and Amrei Fuder, from Real Estate; and Dimitri Slobodenjuk, from Regulatory; and (iii) Luxembourg law matters by Christian Kremer, Mélissa Kdyem and Nina Aymé, from Corporate; and Marc Mehlen, Veronika Kaszas and Tjasa Perger, from Finance.

Law Firm Advises Sims Metal Management Limited

Eversheds has advised Sims Metal Management Limited on the agreed €83.5m sale of its European compliance scheme orientated recycling operations to German-based TSR Recycling, a subsidiary of REMONDIS Group.

Sims Metal Management Limited is a global environmental services conglomerate, operating through a number of divisions, with a focus on: Ferrous and Non-ferrous metal recycling, enterprise data destruction and cloud asset management post-consumer electronic goods recycling and reuse, municipal waste recycling, gas to energy, and waste to energy.

Founded in 1917, its primary operations are located in the United States, Australia and the United Kingdom.

Environmental services refer to qualitative functions of natural non—produced assets of land, water and air and their biota.

The operations that have been sold are located in Germany, Austria, the Netherlands, Belgium and Sweden. The deal, which is subject to competition approval by the European Commission, includes the sale of Sims’ waste electrical and electronic equipment treatment facilities in Sweden, Norway, Belgium and the Netherlands.

The sale does not include Sims’ global e-recycling IT asset disposal business.

Eversheds was led by corporate Partner James Trevis with Principal Associate Anthony Cross and Senior Associate Thomas Plant.

The wider team included Partners Peter Harper, Simon Weppner, David Beswick, Jane Southworth and Tom van Wijngaarden, Consultant Stephen Rose, Principal Associates Evy Verhaeghe, Claire Morgan, Anique Bitterlich and Marieke Koster, as well as senior associates.

AVELLUM advises on large infrastructure financing deal

AVELLUM acted as the Ukrainian legal counsel to the European Bank for Reconstruction and Development (“EBRD”) in connection with a senior secured loan of up to EUR2.6 million to Negabarit-Service LLC (“Company”), a Ukrainian leader in the oversized and complex auto cargo transportations.

The loan will help financing the Company’s investment programme for the acquisition of up to 42 trucks equipped with advanced GPS systems and 18 trailers. Industrial customers across Ukraine and the EU will have access to a wider range of oversized cargo transport services following the transaction.

The new trucks will decrease the Company’s operating costs by at least 30% due to a reduction in fuel consumption and maintenance expenditure. The new vehicles will be compliant with EURO-6 or higher emissions standards, which will help decreasing nitrogen oxide (NOx) emissions by 80% and carbon oxide (CO) by 22%.

The EBRD is the largest international investor in Ukraine, which has provided almost EUR13.1 billion to fund approximately 418 projects since 1993.

The AVELLUM team was led by senior partner Glib Bondar with support from counsel Maria Tsabal and associates Oleksandra Kupriichuk and Anna Kalabska.

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