Turnkey Operation for Large "Bottle to Bottle" Recycling Facilities

At Rabin our services extend beyond auction and liquidation sales as we recognize that this is not always the best strategy to realize value for our clients.  Certain facilities already have a proven, successful business model, intellectual property and experienced employees and merely require investment of capital and the right professional management.  In these situations, the optimal solution is to sell the operation through a turnkey process. 

Currently we have listed just such a turnkey opportunity from one of the world’s largest “bottle to bottle" recycling facilities (Formerly of a Fortune 500 Company).  Previously the operation had produced 100 million pounds per year of food-grade recycled polyethylene terephthalate (PET) plastic for reuse, the equivalent of nearly 2 billion 20-oz. plastic water bottles.  

Located in Spartanburg, N.C., this large operation includes a 35-acre parcel with a 50,000 sq. ft. recycled process building that has 20’ ceilings as well as a 60,000 sq. ft. final process production building.  Both of the buildings are complete with separate office space, a compressed air supply and their own maintenance area.  The facilities had a total of $60 million invested in them since 2008.

A brief sampling of equipment includes a Bollegraah bottle recycling system with Titech model 1400 & 2000 color & metal sorters, West Salem bale breaker with bottle cap eliminator, Selco-Green Machine final waste baler with aluminum can and waste plastic recovery bins.  Other featured items are color & metal sort decks that include: Satake ScanMaster-II color sort machines as new as 2010, PowerSort 200 optical scanner, complete metal sort deck with (16) S+S metal detectors, plus Forsberg de-stoners, stainless infeed and crossover feed screws.

The facilities equipment consists of a new (unused) waste water system with Centrisys decanter centrifuge, RO skid and stainless settling tanks.  Also Quincy 300 hp air compressors, Cummins emergency gen set, and material handling trucks along with maintenance shop.

Please see our website for more information regarding this turnkey operation.  While you are there, take a look at other upcoming auctions, or contact us if have further questions or want to learn more about Rabin’s extensive services.

As professional industrial liquidators, Rabin Worldwide offers their clients a wide range of services.  In addition to being specialists in providing companies with expert asset recovery services and asset valuation, they also run an in-house commercial real estate investment and management company.   Rabin is headquartered in San Francisco with a European subsidiary office in Manchester, United Kingdom.

Exciting Turnkey Opportunity for a Bottled Water Packaging Facility

Rabin offers clients services that go beyond auction and liquidation sales as frequently this is not the best strategy for a company.  In many cases, a business already has a proven record of a successful business model, an intellectual property and experienced employees and just requires an investment of capital along with a professional management team.  At Rabin our solution is to sell the complete operation through a turnkey process. 

Currently we have a listing for a complete turnkey operation for the former Advanced Refreshment and Niagara Bottling facility through March 23, 2015, or will be announcing an auction sale date for some time in April.  The facility is located in Burlington, Washington  (65 miles north of Seattle), and had previously generated a weekly yield of over 15 million bottles, in 24 pack cases, or approximately 650 cases per week. 

The operation is comprised of a 65,000 square foot production facility with four late model bottle-making/packaging lines for spring, distilled, flavored, and enhanced bottled water products.  Equipment features three Krones bottle-making & filling lines (400 to 600 bpm): with S16 & S20 Coniform blow molders, Krones vlumetric filler/cappers, Krones sleeve wrapper, Kisters tray packers, Arpac overwrappers, Pressco vision systems, Domino Amjet laser coders, and Sentry conveyor systems.  Other equipment highlights include a 2.5 gallon bottle-making & packaging line (running 50 bpm) as well as a water processing & purifying department.   The facility and general plant has three 450 hp high pressure A/F compressed air sets for blow molding operation and a Kaeser screw compressor for general plant needs.

Please check the Rabin website for all of the details regarding this bottling facility or to get the date if the facility goes to auction in April.  In addition our knowledgeable staff will be happy to help answer any further questions you may have. 

Rabin is an international company that specializes in creating liquidity for complex manufacturing facilities with idle or marginally productive assets.  Our operations include selling entire plants, multiple plant locations, or surplus individual items by auction or liquidation and much more. Rabin is headquartered in San Francisco with a European subsidiary office in Manchester, United Kingdom.

Unused Ani Mineral Processing Ball Mill for Immediate Sale

The Rabin Company is now offering an exceptional opportunity to purchase an unused Ani Mineral Processing ball mill.  We are accepting offers for the mill that was manufactured in 2001 and has never been installed or used.  The item is located in Quebec, Canada.   

The Ani Mineral Processing ball mill is designed for iron ore and is a wet overflow discharge model.  The dimensions of the item are 21.75' x 43' (6.63m x 13.11m) and it has two 6,700 HP (5,000 kW) motors.  The ball mill has the capacity to grind material that is fed at a dry rate of 325 MTPH and a feed size of F80 430 microns to produce a product of P80 57 microns.  It has a dual pinion drive that consists of two 5000 kW (6700 HP) and Alstom 8 pole slip ring electric motors.  With a fixed operating speed of 12.809 RPM, the mill provides 77.2 of critical speed.  In addition the ball mill is designed to rotate in both directions.  

This item is sold under our normal terms and conditions, and full payment of the purchase price must be made in United States Dollars, and must be made on the day of sale as set forth in the invoice sent to the buyer upon sale.  In addition, any and all foreign duties and taxes are also the responsibility of buyer.  For the full terms and conditions of sale, please refer to our website.

Also go to the Rabin website for the contact information regarding this great opportunity to buy an unused Ani Mineral Processing ball mill.  While you are there, be sure to check out our other great auction items.    

As professional industrial liquidators, Rabin Worldwide offers their clients a wide range of services.  In addition to being specialists in providing companies with expert asset recovery services and asset valuation, they also run an in-house commercial real estate investment and management company.   Rabin is headquartered in San Francisco with a European subsidiary office in Manchester, United Kingdom.

Auction for Surplus Equipment from a Producer of Artisan Breads

 

The Rabin Company will hold an upcoming ONLINE ONLY auction to sell surplus equipment from the Wenner Bakery, a producer of artisan breads.   The March 19, 2015 public auction will take place at bidspotter.com.  The Wenner Bakery is a producer of artisan fresh, par baked and frozen breads and is selling equipment that is no longer needed.  The pre-inspection for the auction will take place on March 18 from 9 am – 4 pm, or if desired, by earlier appointment.  The equipment is located at the following sites: 2001 Orville Drive North, Ronkonkoma NY, 44 Rajon Rd., Bayport NY, and 571 Jersey Ave. New Brunswick, NJ.

This auction will feature two Diosna SP240E tandem spiral mixers with discharge conveyor and elevator, two Hobart V-1401 vertical mixers, an Urschel stainless M-L dicer, and a Wachtel Columbus stainless deck oven with proof box and loader.  Auction items also include BMD and Empire bagel formers as well as an Empire bagel dough divider. 

In addition there will be several models of APM semi-automatic baggers, a few models of Formost paddle bread baggers, and a large selection of packaging equipment.  Also among the sale items are Rademaker oven load/unload conveyors. 

For a complete listing of the items from the Wenner Bakery online auction, along with photographs and specifications, please visit the Rabin website.  Once there you will find all of the details as well the information on how to register to bid and the terms and conditions of the sale.  

Please contact one of our sales staff if you have further questions about this upcoming auction or any other auction listed on our site.  We are also happy to help if you want to sell your surplus equipment or would like more information regarding Rabin’s other services.

Rabin has been assisting companies with creating liquidity through innovative solutions for over 60 years. Our operations include selling entire plants, multiple plant locations, or surplus individual items by auction or liquidation and much more. Contact us for more information regarding our professional auction liquidation services.

Some of the Most Expensive Items Sold at Auction

Since Rabin is one of the foremost industrial and commercial liquidators and has sold equipment assets in every trade sector and on almost every continent, we thought it would be fun to learn more about other types of auction sales.  In a recent article from Town and Country’s online site, they listed some of the most expensive luxury items sold at auction over the last several years.  Here is a sampling of some of those items.

An extremely rare stamp was sold at auction in June, 2014 and set a world record for its $9.5 million selling price.  The 1856 Magenta one-cent stamp is from British Guiana and was a part of the collection of John W. Dupont.  Another item, a rare 1719 ‘Macdonald’ Stradivarius viola failed to attract a buyer when it also went up for auction last year.  It was a sealed bidding process and the seller’s lowest asking price was $45 million.

In late 2013, Christie’s Auction House sold one of a series of balloon-like sculptors by Jeff Koons.  The Balloon Dog (Orange) sold to an anonymous telephone bidder for $58.4 million, and according to the New York Times, became the most expensive work by a living artist to sell at auction.   Also sold in 2013 was the Clark Sickle-Leaf Carpet.  This carpet is from around the 1700’s and is thought to be from the Kerman Province in what is now Iran.  The carpet sold at Sotheby’s New York for $33.7 million. 

The world record for the highest price paid at auction for a diamond is the Graff Pink emerald-cut 24.7 carat diamond.  It sold at Sotheby’s in 2010 for $46.1 million.  An $11 million world record for a pocket watch goes to an anonymous bidder in 1999.  It was a 1933 Patek Philippe, which took more than six years to assemble.  Finally the most expensive bottle of wine was a jereboam of 1945 Chateau Mounton Rothschild that sold for $310,700 in 2007.

Source: townandcountrymag.com/leisure/arts-and-culture/reviews/g753/22-of-the-most-expensive-items-ever-sold-at-auction

Rabin is an international company that specializes in creating liquidity for complex manufacturing facilities with idle or marginally productive assets.  Our operations include selling entire plants, multiple plant locations, or surplus individual items by auction or liquidation and much more. When you need to sell assets, realize your maximum value by using the services of highly experienced commercial liquidators.

Our Successful Turnkey Transaction for Davis Cookies

At Rabin we provide turnkey sales and solutions throughout North America and actively market and sell companies in their entirety, including equipment, inventory, intellectual property, customers, and often the attached real estate.  We have the expertise to navigate through all of the aspects of a complex sale process and are able to conduct auctions of any size on behalf of our clients.

One example of our success is from a couple of years ago with the Davis Cookies Company. Along with their partner, CRG, they hired Rabin to sell off all of its equipment assets at auction.  The plant had produced Archway cookies for decades until Archway was force to file for bankruptcy. 

Our solution was to mount an intense marketing campaign to try and secure a buyer.  After four months, we successfully found an interested party that wanted to purchase the entire facility prior to the already scheduled auction.  This resulted in Davis Cookies selling the entire operation, which included retaining all of the current employees.  It was a win-win for our client, the buyer, and the employees as well as for the community.  We were more than happy to cancel the planned auction. 

This is just one of the types of services we provide for our clients.  With over 60 years of experience in the industry, we have gathered quite an extensive buyer database that enables us to target strategic buyers both on a product and a geographic basis.  We bring a unique combination of financial strength, diversified experience and unparalleled professional expertise to take on deals of any size and of any complexity.  Contact us for more information. 

Rabin is an international company that specializes in creating liquidity for complex manufacturing facilities with idle or marginally productive assets.  Our operations include selling entire plants, multiple plant locations, or surplus individual items by auction or liquidation and much more. Past auctions include names such as Hostess, Braniff Airlines, Montgomery Ward, and the Railway Express Agency.  Please contact us to learn more about our services. 

Power Generation & Electrical Machinery Online Auction



 

You may want to take note of another upcoming Rabin auction that will be ONLINE ONLY in our Power Generation & Electrical Machinery division for the company formerly known as USEC.  This online auction will be held at bidspotter.com.  We have not confirmed the date yet, but if you give us your email address, we will send a notification on venue changes, significant updates to the catalog and other important details about this auction.

This auction will offer items that were purchased new in 2008 and were never installed.  Diesel Generators include:  four (4) 2008 Caterpillar M/N 3512CDG/SR4B-GD backup generator, diesel engine, 1537 KVA, 1230 KW, 60 Hz, generator 3 PH, 6-wire, 480 v, 1849 amps, w/muffler as well as two (2) 2008 Caterpillar M/N C27 back-up generator, diesel engine 906 KVA, 725 KW, 60 Hz, generator 3 PH, 12-wire, 480v, 1,090 amps, with muffler.

Heat Exchangers include eight (8) WCR M/N WCRA891M plate heat exchangers, stainless steel, MAWP (hot/cold), 150 psi at 266 Deg. F, MDMT -5 Deg. F at 150 psi, test 195 psig, approximately 80 plates each.  The Electrical Inventory includes: (16) General Electric M/N 9T83C9874-Type QL general purpose power transformers, dry type, 3 PH, 75 KVA, 60 Hz, 480 (+2, -42.40%) voltage; three (3) CD Technologies M/N ARR-M12550F UPS battery chargers, 480 volt; 3 PH, with AC/DC breaker; and ten (10) Flowserve MK3 STD centrifugal pumps.

 

Furthermore, the auction will include a large quantity of Marwin & Flow Tek stainless and brass ball valves, Centerline, Crane Duo & Powell butterfly gate valves, MKS pressure transmitters and transducers, and much more!​  Check our website to see the complete listing of items for sale and to get the date. 

You will also find detailed instructions on how to sign up as a registered bidder, and while you are there, be sure to take a look at other upcoming auctions.  Contact us if have further questions regarding all of our services.

 

Rabin is an international company that specializes in creating liquidity for complex manufacturing facilities with idle or marginally productive assets.  Our operations include selling entire plants, multiple plant locations, or surplus individual items by auction or liquidation and much more. Past auctions include names such as Hostess, Braniff Airlines, Montgomery Ward, and the Railway Express Agency.  Please contact us to learn more about our services. 

Upcoming Auction for a Bread Baking Facility

 

In business for over 60 years, Rabin is a family-held industrial auction and real estate investment company that focuses on the acquisition and sale of industrial equipment and facilities around the world.  We are pleased to announce an upcoming auction for a Bread Baking Facility that was formerly known as the Specialty Bakery Company. 

This auction is ONLINE ONLY and will be held through bidspotter.com.  The inspection site is at 1365 North 10th Street, San Jose, CA and starts on February 2^nd -3^rd, 2015 from 9 a.m. to 4 p.m.   The online auction opens February 2^nd and closes February 4th.   

The auction categories include the Mixing Department, which has items such as APV 1,110 lb. S/S roller bar mixer, High production ice makers, Flour sifting and transfer.  The Bread Line includes auction equipment and machinery such as: Werner & Pfleiderer 4-pocket divider, Benier rounder, Benier 900-pocket intermediate proofer, and SuperGrain sheeter/moulder.

The Baking Department offers items such as: Reed 5-door pass through proof box, (3) Revent double-double rack ovens, (3) Adamatic double-double rack ovens, and Rainier rotary tray oven.  The Bag Line includes the following items: UBE band slicer, Formost bagger, and (2) Kwik-Lok bag closers.  Finally the Plant Support items include: Walk in/Drive in coolers and freezers, Yale LPG forklift, Elliot Magnetek 250 KW gen. set, Boiler and Spare parts.

Please see our website for the complete details on the Bread Baking Facility auction and the information on how to sign up to bid.  While you are there, take a look at our other upcoming auctions and be sure to check back frequently for new listings.  Contact us if you need further information regarding any of Rabin’s services. 

Rabin assists companies with creating liquidity through innovative solutions. We specialize in complex manufacturing facilities with idle or marginally productive assets. Rabin’s operations include selling surplus individual items, entire plants, or multiple plant locations by auction or liquidation and much more.

Auction for a Complete Pasta Manufacturing Facility

 

Among several upcoming auctions for Rabin is the complete Production Facility of Fresh & Filled Pasta, which was formerly the Pasta Reale UK.  The auction takes place Live and Online from January 28-29^th.   Day 1 of the auction is on Wednesday, Jan 28th and starts at 11:00 a.m. (On Site and Online).  The location is at the Premier Inn Gatwick Airport Manor Royal Hotel, Fleming Way, Business Quarter, Crawley, U.K.  At this time, lots 1-399 will be auctioned off.   

Day 2 of the auction opens on Monday, Jan 19th & closes Thursday, Jan 29^th.  This portion of the auction is ONLINE ONLY and, at this time lots 400 – 681 will be auctioned off.  The online bidding is done through bidspotter.co.uk.  The auction preview starts on Jan 27th from 9 a.m. - 4 p.m., or may be done by setting up an earlier appointment.

The complete Production Facility of Fresh & Filled Pasta offerings include exceptional late model pasta equipment for small, medium and large producers.   There is more than a 60,000 square foot production floor with (10) complete production & packaging lines.  Included in auction items are numerous new installations as late as 2013 such as:  Agnelli filled pasta lines with auto mix and shuttle delivery; Italplast pasta extrusion lines for small unfilled products; and MBP 14 & 16 head all stainless multihead weigher platforms. 

Inventory also includes items from: Versatile Packaging Machines for All Food Producers and General Plant & Support Equipment.  A few examples are:  Complete preparation & cooking department with Hobart meat mincers, mixers, kettles & product washers and Daiken skid mounted glycol chiller system (new in 2014).

Please see our website for the complete list of items for auction and instructions on how to sign up to bid.  Be sure to take a look at other upcoming auctions.  Contact us if have further questions. 

Rabin has been assisting companies with creating liquidity through innovative solutions for over 60 years. We specialize in complex manufacturing facilities with idle or marginally productive assets. Contact us for more information regarding our professional auction liquidation services.

Liquid Foods Manufacturing & Packaging Plant Auction



Now that the New Year is here, Rabin has several large auctions on our calendar.  First up in January is the auction for an entire Liquid Foods Manufacturing & Packaging Plant that was formerly known as Royal Food Products.  It will be held on January 21, 2015 starting at 10 a.m. and is both on onsite and online auction.  The preview will take place on January 20th from 9 a.m. – 4 p.m. or you may make an appointment to view items earlier. 

The auction will take place at the Homewood Suites in downtown Indianapolis at 211 S. Meridian Street.  In addition to the equipment and machinery, there is 8.31 acres of real estate available that contain 66,000 square foot of industrial space on 2 of the 6 parcels (not all contiguous).  Two of the acres are zoned for residential use.  The property is at 2322 East Minnesota Street, Indianapolis, Indiana.

The Liquid Foods Manufacturing & Packaging Plant had produced a full range of sauces, dressings, snack dips, energy drinks, and specialty dairy foods and the Rabin website only has a partial listing of the extensive auction items.  The auction will be held in conjunction with BidSpotter, where you will find the complete inventory of items for sale. 

Equipment and machinery for this large auction include categories such as: Dairy Based Process Department; Snack Dip Make-up & Packaging Lines; Drink & Energy Booster Packaging Line (2oz. to 64 oz. P.E.T. bottles); Salad Dressing Make-up Department; Dressing & Sauce Packaging Line to 128 oz.; and Bulk Storage Tanks & Support.  An example of items from the Snack Dip Make-up & Packaging Lines is the complete snack dip make-up deck with cookers, kettles and holding tanks; World Cup rotary cup filling lines for 1.5 oz. single servings to 60 oz. containers. 

 

While the auctioneer does not recommend nor endorse any rigger, rigging company, moving and/or shipping services, Rabin does have several companies posted for information purposes only.  Please see our website for complete details on this auction as well as our other upcoming auctions.  Contact us if you need further information. 

Rabin is an international company that specializes in creating liquidity for complex manufacturing facilities with idle or marginally productive assets.  Our operations include selling entire plants, multiple plant locations, or surplus individual items by auction or liquidation and much more. Past auctions include names such as Hostess, Braniff Airlines, Montgomery Ward, and the Railway Express Agency.  Please contact us to learn more about our services. 

Rabin’s Fascinating History in the Industry

Rabin is one of the few liquidation companies that can provide all of the resources you need whether it is a professional appraisal, to sell surplus equipment and machinery, or liquidate an entire business. As an international family-held industrial auction and real estate investment company in business for over 60 years, we have the size and financial ability to take on deals of any magnitude and of any complexity.  It is a fascinating story of how Rabin developed into one of the top auction and liquidation companies in the world.  

Shortly after serving in WWII and the Korean War, the Rabin brothers started a small business in the early 50’s selling war surplus through liquidations in their hometown of San Francisco.  By the end of the decade, Henry Rabin started his own business with a focus on liquidations. 

The 60’s presented an opportunity for the business to grow by holding several big auctions for companies in the mining business.  The Natomas Company was famous for extracting more than $100,000,000 of gold by hydraulic mining and the Golden Cycle Mining Company.  

The following decade brought the Rabin brothers back together to form Rabin Brothers Auctioneers in 1972.  One of the big accomplishments in 1975 was selling the Railway Express and their over 200 depots that required Rabin to stage and assemble 26 auctions in different locations across the U.S.  The 70’s also established Rabin as renowned experts in food service auctions with the Rheingold & Schaefer Brewing Companies auction.

By 1987, Rabin’s had its first airline auction with Braniff Airways and introduced the industry to theater-style auctions.  For the first time, buyers could view and bid on items while comfortably seated in a theater-like setting (in this case, out of the blazing sun). Shortly thereafter, all auction companies adopted this method.

In 1995, Rabin expanded operations internationally by opening an office in the United Kingdom.  Further expansion in 2003 included the Asia-Pacific with liquidation and auction of the Kraft chewing gum factory in China followed a few years later by an auction in the Middle East of the Tnuva Dairies, Israel’s largest food maker.  Please see our full history and timeline at the Rabin website. 

Rabin is an international company that specializes in creating liquidity for complex manufacturing facilities with idle or marginally productive assets.  Our operations include selling entire plants, multiple plant locations, or surplus individual items by auction or liquidation and much more. Please contact us to discover how we can help you with our professional asset liquidation process.

Is Your Business Closing? Helpful Tips for Liquidating

If you wish to close your business and have been unable to find a buyer, liquidating assets can offer a valuable solution.  Although before you do anything, you need to take the time to set up a plan, which should include consulting with your attorney and tax advisor.  Also, remember that if you are liquidating assets to satisfy creditors you may need to obtain their consent to do so. 

To get started, make a list of all the company’s assets such as equipment and machinery, office furniture, technical devices, vehicles and property that the business owns.  Include your inventory and intangible assets like business licenses, permits, patents, or trademarks as well as your customer list and business contacts. 

Make a note the condition of the asset, the age, maintenance history and repairs, and any warranty information along with taking photos.  Evaluate the condition of an item, and if anything is worn out or obsolete, it can be donated and used as a tax deduction or recycled.  If you have leased equipment, find out how much you still owe and whether it makes sense to buy it if you think you could sell it for more money than you owe. 

To establish the liquidation value of your assets, it is a smart idea to work with a qualified appraiser.  You are going to want a written liquidation value appraisal before you consider any purchase offers.  By using the services of an a company that specializes in asset recovery and disposition, they can assist with the sale as well as help to determine the best type of sale for your situation whether it is through an auction or liquidation.

Once you start to liquidate these assets, remember to keep good records of the marketing process, purchaser, and the amount of money you received.  You will need all of this information for your tax returns.

Rabin Worldwide is an international company that specializes in creating liquidity for complex manufacturing facilities with idle or marginally productive assets.  Past auctions include names such as Hostess, Braniff Airlines, Montgomery Ward, and the Railway Express Agency.  Please contact us to discover how we can help you with our professional asset liquidation process.

Asset Valuation Process - Definition of Terminology

At Rabin, our professional machinery and equipment appraisal team has worked together for over 25 years and have extensive experience in nearly every facet of industrial equipment.  Their collective expertise has allowed them to complete hundreds of reports over the years that provide our clients with real-world obtainable value conclusions.  The following is our final blog discussing terminology used in the asset valuation process. 

Our definitions are from the American Society of Appraisers who define the following as a starting point based on standard appraisal theory.  ASA’s states the definitions may be expanded or refined as the purpose and function of an appraisal dictate, as long as the fundamental concepts are not altered. (Other than laws by a country, state, region, or regulatory agency that may take precedent)  

·         Salvage Value - An opinion of the amount, expressed in terms of money that may be expected for the whole property or a component of the whole property that is retired from service for possible use elsewhere, as of a specific date.

·         Scrap Value - An opinion of the amount, expressed in terms of money that could be realized for the property if it were sold for its material content, not for a productive use, as of a specific date.

·         Insurance Replacement Cost – An opinion of the amount of the replacement cost new as defined in the insurance policy less the replacement cost new of the items specifically excluded in the policy, if any, as of a specific date.

·         Insurance Value Depreciated – An opinion of the insurance replacement cost new less accrued depreciation considered for insurance purposes as defined in the insurance policy or other agreements, as of a specific date.

To discuss your machinery and equipment appraisal needs, please see our website for contact information.  We are more than happy to answer any questions you may have regarding your equipment appraisal situation.

In business for over 60 years, Rabin is an industrial auction and real estate investment company, with a focus on the acquisition and sale of industrial equipment and facilities around the world.  Rabin Worldwide is headquartered in San Francisco with a European subsidiary office in Manchester, United Kingdom.

Source:

Machinery & Technical Specialties Committee of the American Society of Appraisers, July 25, 2010

http://www.appraisers.org/Disciplines/Machinery-Technical-Specialties/mts-appraiser-resources/DefinitionsOfValue

Definition of Terms Used in the Asset Valuation Process

For more than 60 years, Rabin has been a family-held industrial auction and real estate investment company, with a focus on the acquisition and sale of industrial equipment and facilities around the world.  This is the first of a blog series that defines common terminology used by the industry. 

Our information comes from the American Society of Appraisers.  ASA states that the following definitions are the starting point for terms that are based in standard appraisal theory.  Furthermore while they “provide the fundamental value concepts; they are not the only acceptable definitions, since contracts or jurisdictions may dictate somewhat different philosophies.”  The ASA definitions are as followed:

·         Fair Market Value - An opinion expressed in terms of money, at which the property would change hands between a willing buyer and a willing seller, neither being under any compulsion to buy or to sell and both having reasonable knowledge of relevant facts, as of a specific date.

·         Reproduction Cost New - The cost of reproducing a new replica of a property on the basis of current prices with the same or closely similar materials, as of a specific date.

·         Replacement Cost New - The current cost of a similar new property having the nearest equivalent utility as the property being appraised, as of a specific date.

·         Orderly Liquidation - An opinion of the gross amount, expressed in terms of money, that typically could be realized from a liquidation sale, given a reasonable period of time to find a purchaser (or purchasers), with the seller being compelled to sell on an as-is, where-is basis, as of a specific date.

·         Forced Liquidation Value - An opinion of the gross amount, expressed in terms of money, that typically could be realized from a properly advertised and conducted public auction, with the seller being compelled to sell with a sense of immediacy on an as-is, where-is basis, as of a specific date.

As leading industrial and commercial liquidators, Rabin has sold equipment assets in every trade sector and on almost every continent.  Our professional asset appraisal services provide an essential starting point for any asset-based lending or disposition process.   

At Rabin, our professional machinery and equipment appraisal team has been working together for more than 25 years—gaining extensive experience in nearly every facet of industrial equipment.  Our seasoned appraisers have completed hundreds of reports, providing our clients with real-world obtainable value conclusions.  Please contact us to learn more about our comprehensive services. 

Source:

Machinery & Technical Specialties Committee of the American Society of Appraisers, July 25, 2010

http://www.appraisers.org/Disciplines/Machinery-Technical-Specialties/mts-appraiser-resources/DefinitionsOfValue

Using Your Equipment and Machinery Assets as Collateral

Collateral is the property or other assets that a borrower offers to a lender to secure a loan, and will be forfeited and typically sold in the event of a default.  Very often businesses use assets such as equipment, machinery, buildings or inventory as collateral to reassure lenders that they have another source of repayment if the need should arise.  

When financing new business assets, they are in most cases automatically considered collateral until such a time that the loan is paid in full.  If the amount of equity you put toward the purchase of the new assets is considered insufficient, other assets may be required as collateral toward the debt. 

According to the U.S. Small Business Association, “Certified appraisals are required for loans greater than $250,000 secured by commercial real estate. The SBA may require professional appraisals of business and personal assets, plus any necessary survey and/or feasibility study.”  They further state that when real estate is being used as collateral, banks and other regulated lenders are required by law to obtain third-party valuation on transactions of $50,000 or more.

For any SBA loan, all owners are required to make a personal guaranty that consists of 20% or more of the business along with any other individuals who hold key management positions. They state that, “Whether a guaranty will be secured by personal assets or not is based on the value of the assets already pledged and the value of the assets personally owned compared to the amount borrowed.”

This is where the services of a company such as Rabin are invaluable by offering accurate third-party valuations to a business.  Our asset appraisal services provide an essential starting point for any asset-based lending or disposition process.  For over 60 years, we have expertly assisted companies with obtaining working capital by valuing assets promised as collateral to asset-based lenders and investors. 

Rabin is an international company that specializes in creating liquidity for complex manufacturing facilities with idle or marginally productive assets.  Rabin’s operations include selling entire plants, multiple plant locations, or surplus individual items by auction or liquidation and much more. Past auctions include names such as Hostess, Braniff Airlines, Montgomery Ward, and the Railway Express Agency. 

Source:

Small Business Association https://www.sba.gov/content/collateral

Capital Equipment Purchases

Regardless of whether your company is large or small, making capital equipment purchases require careful consideration.  Identifying your needs for replacing, upgrading or adding to your current inventory of capital equipment and machinery needs to be reviewed and analyzed for all available options. 

By recognizing the significance of capital purchases for equipment and machinery, a business needs to determine if the new pieces will add value and perform well over their expected life span and beyond.  This is where a lifecycle analysis can help.  It is used to chart out the full cost of ownership and compare the costs between different models and the price difference if bought new, used, or leased.
 

The process of a lifecycle analysis takes into account the full price of the leasing agreement and the purchase price of buying the equipment new or used.  Factors should include: delivery charges, installation fees, any training costs, maintenance, and depreciation.  Other things to figure in would be the cost of disposing of your existing equipment and any plant layout changes the new equipment or machinery will require.  If financing the equipment or machinery, be sure to include any interest charges as well. 
 

Used equipment may be your best bet for equipment or machinery that is not technologically dependent and is not likely to become obsolete in a short period of time.   Also new or used equipment allows you as the owner to make modifications, whereas with rental equipment, you generally are locked into that piece of equipment for a set period of time and cannot make any alterations to it.  
 

We encourage you to check out our current and upcoming auctions and liquidation sales at Rabin.  As leading industrial and commercial liquidators, Rabin has sold equipment assets in every trade sector and on almost every continent. We purchase complete factories, including real estate, and conduct auctions of any size on behalf of our clients.
 

In business for over 60 years, Rabin Worldwide is an industrial auction and real estate investment company, with a focus on the acquisition and sale of industrial equipment and facilities around the world. In addition to being specialists in providing companies with expert asset valuation and asset recovery services, we also run an in-house commercial real estate investment and management company.  Rabin Worldwide is headquartered in San Francisco with a European subsidiary office in Manchester, United Kingdom.