WHY AUCTIONS?
Auctions work for buyers and sellers alike because everyone involved wins. The seller wins because they are able to sell their assets on a timely basis. Buyers win because the savings realized by the seller can be shared by the buyer in the form of auction prices.
Assets become non-producing for many reasons. Financing, facility upgrades, consolidations, shutdowns, and relocation's are but a few examples of why. Holding non-producing assets or the slow process of traditional sales techniques lead to expensive carrying costs such as insurance, depreciation, taxes, maintenance, and tie up credit lines. These costs and the inability to buy new income-producing assets diminish the return of principal invested. Selling today in a competitive process will yield the highest fair market return while freeing capital to reinvest.
Auctions create a competitive market place for assets. With a planned marketing campaign, inspection period, and auction sale, assets can be sold for the highest return in a fixed time frame and for a fixed cost. Prolonged staffing, security, facilities, and other expenses are contained unlike unplanned conventional sales techniques.
Generating higher prices due to the competitive bidding and emotional process that occurs between two or more bidders, auctions generally bring a higher return than expected by the seller. Interested and qualified buyers are targeted using many forms of media including but not limited to newspapers, direct mailing, trade journals, and the internet. Each auction has a customized advertising campaign directed toward buyers for the particular assets.
Auctions are excellent methods of bringing transparency to the sale of assets for the dissolution of a partnership, a business or the sale of assets in a bankruptcy situation for the benefit of creditors.