In 2011, during the midst of the economic downturn, our client, a Michigan based automotive supplier, itself challenged by reduced sales volume, was presented the opportunity to acquire an out-of-state competitor whose customer base and capabilities were substantially similar to its own. Recognizing the potential to acquire and consolidate volume that would significantly strengthen our client's business, we began to craft a strategy to effectuate the acquisition at a time when funding for transactions of this type was essentially unavailable.

As a result of Hilco's responsiveness and creativity, our client was able to realize a 50% increase in its revenues and solidify its position with a significant customer.

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The primary obstacle which needed to be overcome was the fact that although the strategy contemplated relocating the business to our client's Michigan facility, a six month transition period would be required. It mandated the ability to utilize the target company's fixed assets during this time although not requiring the equipment once the transition was completed.  Further complicating the situation was the fact that the target company had exhausted its working capital and was struggling to remain operational.

Under more favorable economic conditions or lending environment, our client may have attempted to acquire the fixed assets, operate them during the transition period and conduct an auction at the conclusion.  The target's precarious financial position required that our client obtain funding and close the transaction within a three week time period.  With the simpler components of the structure in place, our firm was tasked with securing financing for the equipment portion of the transaction. Recognizing the complicating aspects of the task, we contacted Steve Wolf at Hilco Industrial and presented our requirements to him. 

Steve made arrangements to view the equipment within the week and days after doing so, was able to present a proposed solution.  Even in a precarious economic environment, Hilco's ability to accurately assess value, coupled with its financial resources and entrepreneurial approach resulted in Hilco assembling and leading small group of investors to buy the fixed assets directly from the target and lease them to our client for a period suitable to complete the transition of the target's book of business.  At the conclusion of our client's need for the equipment, it was expediently auctioned and the facility returned to the landlord. 

  • William J. Beck
    Managing Director
    Delta Management Resources, LLC

The auction results doubled our expectations; I was impressed with the manner in which the Hilco personnel coordinated the auction since the equipment auctioned was located throughout Michigan and a quarter of the equipment was located in Phoenix, Arizona. Jody and his team worked well with the remaining client's personnel setting up the auction for photographs and for site visits. The marketing department did well in advance of the auction letting everyone know of the auction. The pre-auction site visits were significant and, I believe, helped in maximizing the results of the auction.

  • Patrick B. Caracciolo
    President
    Wadsworth Consulting, Inc. d/b/a Wadsworth Whitestar Consultants

Hilco was a in a unique position to support Old Carco LLC (Chrysler) through bankruptcy, not just as an asset liquidator, but as a diversified partner bringing creativity of sales strategies and exceptional execution on a project that spanned over 24 months. The flexibility of the financial arrangement they structured made it possible for us to obtain significantly more money for our creditors.  The Hilco team organized each of the facilities, created a thorough marketing campaign and brought highly qualified buyers.  They were invaluable to the estate's recovery.

  • Carl J. Sekely
    Conway Mackenzie

I wanted to thank you and your team at Hilco for a great job in a very difficult transaction.  I was impressed with your ability to manage the expectations of a foreclosing lender who was unfamiliar with the complexities of a cross-border transaction in our industry and did not understand all of the potential traps inherent in the transaction. In addition to a first-rate job marshaling assets at three locations and inventorying tens of thousands of items you successfully helped us and the seller work through difficult tax and logistical issues and worked tirelessly to get the transaction closed.  You did not consider your job done when the transaction closed but made sure that the post-transaction process also went smoothly.

Thank you again for your professionalism and hard work.

  • Jeremiah J. Harris
    Chairman & CEO
    Production Resource Group

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