Case Studies

The Need for Speed: Selling Penske Auto Service

The Challenge: CRG was retained to completely liquidate 606 Penske Auto Service Centers located in Kmart stores located in over 40 states around the country. The logistical nightmare…. All of the centers needed to be sold and vacated within 6 weeks, proceeds and clean up needed to be guaranteed.

The Solution: CRG formed a strategic partnership with an affiliate in California. Command centers were set up on both coasts, and multiple auction teams were dispatched from each office. Each center was inventoried and cataloged, and regional auctions of 6 to 12 centers within a 50 mile radius of each other were set up. One store in each region was opened as a model for inspection, the equipment from all the facilities was auctioned by digital presentation from a central location. Each team sold an average of 12 centers per day, six days per week. Teams of liquidators followed each auction team as they moved from region to region.

The Result: All equipment in each center was completely sold, and the facilities emptied in 48 selling days, on schedule, with no unresolved discrepancies or litigation, and over $10,000,000.00 in gross proceed collected

Hey... I Want That!!! Helping Rexam Make the most of their machinery and equipment

When Rexam, a large international manufacturer of plastics products decided to close one of their facilities, they called CRG to facilitate the plant closure and liquidate the assets. Their primary interest was to maximize their return on the assets, so that they could re-invest in other operations.

We recognized that with over 100 remaining plants worldwide, maximizing returns came down to more than money. We advised them that some of the equipment could be used in other facilities, and recommended that they contact their production managers to see if there was any interest. Well, there was!

The Challenge: Disseminating detailed information about thousands of individual items, evaluating the needs and economic feasibility of transferring machinery and equipment, and developing a liquidation plan for the remaining assets.

The Solution: The CRG appraisal division evaluated, cataloged, and photographed each individual piece of equipment. We constructed a complete on-line color catalog, and posted it to a secured web site. We provided Rexam executives with Current Auction Value, Fair Market Value, and information regarding rigging and removal for each item. Production managers from each Rexam factory were provided an access code and password to visit the web site, and given 60 days to submit requests for equipment that they needed. Company executives had the chance to assess the requests and make reasonable decisions by comparing recovery potential against transitioning the equipment to somewhere else within the organization.

The Result: Approximately ½ of the equipment was effectively transferred to other factories, and the remaining assets were sold at an on site auction sale attended by over 200 registered bidders, with another 100 registered on-line. Successful bidders came from 4 continents.

Homeland Security: Working for the Government in a Post 911 World

Bechtel National was hired by the US Department of Defense to construct the largest mustard gas neutralization and disposal plant in the world, to be located at the Aberdeen Proving Grounds in Maryland. The design was developed as a two phase project. Phase II began just prior to September 11, 2001. Following the attacks in NY, DC, and PA, the government ordered an abrupt halt to all construction, and ordered Phase II equipment to be decommissioned and sold. Following a 1 year application and screening project, CRG was hired to complete the project.

The Challenge: To conduct a public auction sale of a diverse composition of machinery and equipment, in various stages of installation, on a highly secured US Army base, with extremely stringent limitations and restrictions on access, and to guarantee proceeds.

The Solution: CRG worked directly with officials from the US DOD and Bechtel National to develop and implement a complex, pre-screening, security clearance, and registration plan for all interested auction buyers. We directed a series of inspections over a two day period, each guided by DOD and Bechtel personnel. The auction was held at a remote location, by digital presentation, and simulcast live over the internet. CRG organized and supervised a complex schedule of pickups by pre-screened and cleared riggers.

The Result: Over 150 registered buyers were pre-qualified, with full security clearance. Auction proceeds well exceeded the guarantee, all items were picked up without incident, and CRG has been hired by Bechtel National to conduct two more auction sales on their behalf.

What’s in a name? Go Ahead... Make My Day!

When Smith & Wesson issued an RFP to financial institutions and investment banks for a new line of credit, CRG was retained by one of the largest asset based lenders in the world to provide the orderly liquidation value for all company personal property assets.

We recognized that the tangible assets, machinery and equipment, raw material, finished product, and WIP, represented only a part of the total marketable value of the assets. The company already had a very lucrative revenue stream from licensing rights for everything from hunting knives to sunglasses, and CRG determined that there must be a quantifiable intangible value for the oldest and most recognizable name in American manufactured firearms.

The Challenge: To determine a current orderly liquidation value for the intangible personal property assets of Smith & Wesson, that would stand up to the scrutiny of review by the loan committees of the world’s largest financial institutions and investment banks, and comply with IRS and FSAB standards.

The Solution: Networking and consulting with BV specialists, trademark attorneys, marketing professionals, and executives at Smith & Wesson, we developed a formula based upon a comparison between the MSRP of Smith & Wesson produced pistols and revolvers against those manufactured by a generic foreign producer who uses S & W supplied designs. Complex adjustments were made to consider appropriate market share, sales history, quality comparisons, and marketability for both companies, and a dollar amount for the value added by the Smith & Wesson trade name was quantified. CRG used the income approach to estimate the current value of future revenue for the existing licensing contracts with other product manufactures, and a total value of the intangible assets was determined.

The Result: Smith & Wesson was approved for several lines of credit from competing lenders, based upon the aggregate value of their personal property assets, including the value of the intangibles, resulting in a final financing agreement at terms more favorable than initially offered.

The Jimmy Fund: Dana Farber Cancer Institute

Since its inception, CRG has been committed to aiding local and national charitable programs. The Jimmy Fund, the fund raising arm for the Children’s Hospital at the Dana Farber Cancer Institute in Boston, has been sponsored for over 20 years by the Boston Red Sox, and we annually volunteer our services as auctioneers for several fund raising events.

The Challenge: In 2004, we were honored, when the Boston Red Sox and the Jimmy Fund asked us to help them sell six, limited edition Boston Red Sox license plates issued by the Registry of Motor Vehicles. The numbers on the plates, each bearing the Red Sox emblem, represented uniform numbers for Red Sox hall of famers Ted Williams, Carl Yastremski, Bobby Dohr, and Carlton Fisk, All Star player Nomar Garciapara, and commemorative numbers 1, and 406 (Ted Williams’ batting average in 1941, the last time any player in Major League Baseball hit over .400)

The Solution: CRG staged an auction event, on-site at the annual WEEI Jimmy Fund Telethon, with live internet bidding. Celebrities from Matt Damon and Ben Affleck, to Stephen King (die hard Red Sox fans) participated in a rousing auction sale raising a total of over ¼ of a million dollars. Ted William’s #9 plate sold for $140,000.00.

The Result: In the past 25 years, CRG president Bill Firestone has raised over $1,000,000.00 for The Jimmy Fund and child cancer research.