Hybrid Sale Strategy Increases Net Return by 475 Percent for Specialized Assets; Appraisal Conclusions and Advice Confirmed Accurate
Client: Manufacturer of Architectural Glass and a Major Lending Institution
Challenge: Conduct Sale of Highly Specialized Assets with Little or No Secondary Market
AccuVal was engaged to value the assets of an architectural glass plant on a regular basis for the purposes of obtaining working capital from an asset-based loan. The plant included very valuable and highly specialized assets for which there was a very limited resale market. Because of this, AccuVal specifically outlined in its appraisal report an innovative exit strategy for the sale of the specialized assets to position the customer to improve the net realization. A few years later, the company declared bankruptcy and the secured lender inquired about the best approach to conduct a sale of the machinery. We recommended executing the strategy already outlined in the appraisal report. AccuVal's sister company, LiquiTec® Industries, was engaged.
AccuVal and LiquiTec® Approach
AccuVal had recommended selling the three very specialized assets by means of a sealed bid hybrid sale, different from any other that had been conducted previously. The three work centers to be offered at the hybrid sale included a sputter coating line, a tempering leer and a customized glass fabricating line. Recognizing that the seller had significant exposure to a low- or no-selling price if these specific assets were offered at public auction, the hybrid sale was designed to create a highly competitive atmosphere, keep prospective purchasers actively engaged in bidding for the assets and preserve the identities of the interested buyers. When the sale was over, the innovative solution contributed to dramatically increasing the realization on the specialized machinery.
Bottom Line: Price Paid for Specialized Assets Increases by 475 percent or $1,425,000; AccuVal's Appraisal Conclusions and Advice Confirmed Accurate
The hybrid sale, conceived by AccuVal and described in its appraisals, was executed to the letter by LiquiTec®. As a result, the outcome of the sale was maximized, and LiquiTec® become the first firm in history to sell a sputter coating line for removal at a sale of duress.
The AccuVal AdVantage™
Accurate appraisals. Great advice. Expertise to maximize the return from the sale of specialized assets. The ability to execute. That's The AccuVal AdVantage™ at work.
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