Success Story
Mayville Engineering Company
Overview
Whether you’re downsizing, consolidating operations or closing up shop, you have a lot on the line. From emotional to financial pressures to tough expectations and critical timing. This is a moment when you need to have complete confidence that you can get the absolute most for your assets, and know you’re working with a partner who’s willing to go above and beyond to protect your interests.
Mayville Engineering Company (MEC) was in the process of setting up a new facility for one customer when that customer decided to rescind on the contract. The contract cancellation left MEC stuck with a brand new lease and equipment specifically designed and engineered for a single product. After viewing the equipment, some installed and some still brand new in the crate from the engineers, we created a solution for MEC to plug the leak in their capital expenditure on the project.
Process At a Glance
3.1.22
Introduction
CIA is contacted by MEC client who we’ve handled surplus machinery for in past about their facility in Hazel Park, MI.
3.9.22
Inspection
Equipment is inspected by CIA staff member at the facility and at the offsite facility a few hours away.
3.18.22
Proposal is submitted to MEC for their review
4.7.22
Contract is executed by both parties
4.11.22
Auction is posted to website with advertising as well as videos of machinery running
4.14.22
CIA Personnel arrive to spend a couple of days onsite catalog & photograph the machinery, tooling & accessories.
4.15.22
CIA meets the MEC’s local rigger to discuss removal quotes on a per item basis and schedule.
4.18.22
42 Lots are posted online with multiple photos of each lot as well as videos of the large machinery running.
4.19.22
Advertising is in full swing with mailing brochure going to 5,000 high value clients, email blasts through various trade journals and machinery listings posted.
5.2.22
Multiple inspections have already been coordinated for potential buyers to view Tube Lasers and Robotic Welding Cells.
5.4.22
CIA receives a 70% of new offer on the Tube Lasers from a local end user. After a week of mediating negotiations between MEC and the buyers we come to an agreement to presell the Tube Lasers from the auction at 75% of new cost, 100% wired before auction date, removal within 21 days of the auction date.
5.16.22
Inspection day as 25 potential buyers sign in to walk through the facility to inspect the machinery for sale.
5.17.22
Auction lasts 1.5 hours and we receive approx. $3.5 Million in bids.
5.26.22
All machinery has been paid for.
5.30.22
Tube Lasers are being prepped for removal and Robotic lasers are being picked as trucks are sent in.
6.10.22
Final settlement and all equipment is removed
Outcome
CIA conducted a Live Webcast auction of 40 pieces of brand new equipment, some installed and other equipment still to be installed. Some of the equipment was sold subject to high bid confirmation, allowing MEC to see the high bid before deciding to accept or reject. The auction was attended by 187 bidders and totaled $3.5+ in sales within 1.5 hours. In the end, only one high bid on an E-Coat Line was not sufficient enough for MEC to take the offer, although we did get the line exposure through our marketing that they came to private agreement a few months after our project ended.
” What a relief it was when CIA came to the rescue after that contract cancellation left us high and dry. There we were, stuck with a brand new lease and specialized equipment gathering dust. Most of the machinery had already been reallocated, yet we were still saddled with redundancy. CIA provided the perfect solution – helping us recoup our capital investment and clearing out the building for subletting. Their expertise maximized our return while minimizing the headaches. We’re so grateful CIA stepped in to deftly handle that uncomfortable situation. With their help, we swiftly cut our losses and moved forward.”
– MEC Officer
