Ross Dove – What Does a Million Bucks of Capital Assets Look Like?

By February 2, 2013Blog

Only true insiders would understand an auctioneer’s underwriting and value of assets.  I hope you will enjoy a quick tour, under the curtain of what we see and how unique our gig is.  Today, HGP sent out three proposals on deals we expect will yield about a million dollars, if done perfectly.   The first is a really nice, clean, immaculate digital media company.  IT assets, furniture, production, etc.  It was all bought in 2008 for seven million dollars and very clean. It’s a 30 thousand square foot site and will take our guys five days to prepare and thirty days to liquidity.   The second is a one million square foot forging plant with the better assets already spoken for.   This deal will have two thousand lots, all facing technological obsolesces;  last call for most gear but scrap and salvage is half the total asset value.  This requiring two months prep work and three months to remove assets.  The final one is three thousand back generation computers,   all working but yesterday’s product in the iPad world.   So here is the HGP dilemma.  Nobody will get more, but each deal had different costs.  We are both advisors and principals so you get both hats.  Why don’t we offer the same guarantee for each?  It’s simple, a million bucks the easy way is worth more than a million bucks the hard way.  All I can say is HGP will be there when it’s easy and we’ll really be there when it isn’t.   Let’s partner on both.  Cheers. Rd