Client: Major Lending Institution
Challenge: Obtain Maximum Selling Price for Manufacturing Facility in Poor Market Conditions
AccuVal conducted regular appraisals of a fully-integrated woven fabric mill in Canada. The value of the assets in each subsequent appraisal was falling as fast as the market for textile equipment in North America. Ultimately, the company succumbed to bankruptcy, and the plant was shuttered. Conventional industry wisdom was to move quickly to auction, but we disagreed and supported our position with strong rational. First and foremost, we believed the mill would appeal to the global market because the machinery was fairly new and the capabilities of the plant were very broad, able to process bales of cotton to finished printed fabric. Sister company, LiquiTec presented a very specific plan to capitalize on the strengths of the mill and suggested spending some extra time and money to broker the mill globally while simultaneously (and stealthily) preparing to immediately execute an auction if the brokerage efforts were unsuccessful. The plan was approved.
As brokers, we pride ourselves on deploying marketing plans that combine conventional advertising and personal contact. With Pakistan and India investing in the textile capacity of closed plants around the world, we made these countries our prime targets. Shortly after the strategic marketing campaign was deployed, we were negotiating with buyers throughout the world. Within a month we translated interest into offers. Further leveraging the competition for the plant, offers soon became counteroffers which ultimately resulted in a sale to a company in Pakistan at a premium price – admirable results given the very poor market conditions at the time of the sale.
The success of our brokerage efforts kept expenses very low, while the sale process deployed provided the best possible return for the customer.
Unconventional thinking. Knowledge of global markets. Ability to identify industry buyers with laser-like accuracy. Expertise to design and execute successful exit strategies. Selling skills to maximize the return for our clients. That's The AccuVal AdVantage™ at work.