Key Auctioneers understands the needs of secured lenders. The volume of special asset work has risen dramatically in recent years, often leading to dramatically increased case loads for workout professionals. Key offers a trusted, single point of contact for the multitude of services required by special asset professionals.
Key’s lender services include:
The wave of recent bank mergers has increased the footprint of special assets departments across the region. Key has similarly grown its footprint to meet the needs of secured lenders requiring consistency of service across the entire Midwest region. Whether its auctions, appraisals, repossessions or a host of other services, Key is committed to providing superior consistent service across its six-state coverage area.
Key Auctioneers regularly works with the biggest banks in the region. Key has earned the respect and loyalty of those banks by combining market knowledge, technical savvy, and effective problem solving to the myriad of challenges facing secured creditors. Auction pages throughout the region demonstrate Key’s dominant position among auction service providers in the area.
Key has pioneered the use of privately-conducted Sheriff’s sales in Indiana, Kentucky, and more recently Illinois, and is far and away its leading practitioner. Privately-conducted Sheriff’s sales are much more than an auctioneer simply stepping into the shoes of the sheriff. When done well, they transform the sale from a typical “distress sale on the courthouse steps” to a well-attended, onsite Absolute Auction. The merits are beyond dispute: the bank buys back the property at our Sheriff’s sales less than 10% of the time, the exact opposite of traditional Sheriff’s sales. If your bank is anxious to reduce REO and the carrying costs associated with it, to accelerate sales of foreclosed properties, or to limit exposure to environmental liability, let us tell you how a sheriff sale by private auctioneer can help!
Key is an active buyer of commercial assets, whether it be a single piece of equipment or real estate or an entire plant. Our four certified appraisers, commercial real estate broker, and three real estate agents allow us to quickly respond to any request to purchase real estate or equipment, regardless of size or location. Call us if you are interested in selling assets prior to auction.
Key offers the most flexible and effective REO auction service in the region. Our Multi-Property Auction Events are an effective tool for commercial lenders to sell multiple properties or even an entire portfolio of REO properties at one time. Our track record for achieving maximum value and unmatched liquidity has earned us a reputation as a proven source to manage, preserve, market and auction residential and commercial real estate assets.
Panther Racing – One of the oldest continually operating teams in the Indy Racing League (IRL). The team had struggled over the course of the 2005 season, and lost its sponsorships. The team asked Key to auction the bulk of its assets to satisfy creditors, but hoped a successful auction would allow it to keep enough equipment to field a slimmed down team. Key mounted a highly successful, well-attended 3-day auction with three rings running all three days. Collectibles and memorabilia were auctioned the first day, and race cars, transporters, tools, machine shop, parts, and equipment the last two. All items were also offered via a live online auction. The event exceeded all expectations. Many items were sold online to teams based in South America. The event was so well attended Key was able to charge admission to the event, creating unexpected revenues for the Seller. Happily, proceeds from the auction allowed Panther’s owners to keep enough equipment to live to fight another day. The team went on to finish runner-up in the next four consecutive Indianapolis 500s!
The Paddock – The country’s second largest muscle car parts supplier. The sudden closing of the company sent the value of the company’s million-name database, website, storied brand, and 13 muscle car product lines into free fall. Within days of being engaged, Key convinced the lender to decline a $200,000 offer to purchase the company’s IP and instead found a buyer who days later paid $500,000 for the same IP. Over the next 45 days, Key mounted a multi-tiered approach to selling the Paddock’s huge parts inventory, showroom, vehicles, equipment and 60,000 SF office/warehouse, netting an additional $1.5 million. Not only did the bank get whole, but the bank’s client realized over $300,000 in net proceeds.
American Liquors – A five-store Midwest liquor store chain. Within days of the owner closing the business, the lender called in Key to liquidate the business. Key quickly realized the business’s highest value would be as a going concern, and that a sale would need to happen very quickly to realize going-concern value. One obstacle to selling the business as a going concern was the 2+ month delay required for the state to approve the transfer of the seller’s liquor license to the new buyer. So, Key pre-negotiated a management agreement allowing a would-be purchaser to operate the stores under the seller’s license during the pendency of the license transfer process. Key then recruited the largest liquor store operators in the region to submit sealed bids. Five days after being called in, Key conducted a live telephone auction with the three highest sealed bid bidders. The result was a high bid over $1 million, far exceeding expectations, getting the bank whole, and providing over $300,000 in net proceeds to the seller.
Phelps Trash Co. – A Midwest trash hauling company. This trash company had four municipal contracts, numerous private industry contracts, 100+ roll off dumpsters, and 300+ commercial dumpsters, all spread out over several counties. The company had been closed for over a week when Key was called in. By that point, customers’ trash containers were well past overflowing. Most customers had been contacted by competitors who smelled opportunity to win new customers, and the majority had signed new contracts in order to get their trash picked up. The company’s truck fleet had been so neglected that not one of its compactor trucks was capable of picking up the hundreds of dumpsters still out in the field. Finding, identifying, retrieving, dumping and preparing for auction the hundreds of dumpsters in the field would be a monumental and risky undertaking for which the lender had no appetite. Key made an offer to purchase the entire assets for over $400,000, and proceeded to hire former drivers who knew where the dumpsters were, and rented compactor trucks to pick up the dumpsters. The dump fees alone exceeded $50,000. Key spent another $40,000 getting the fleet back into running condition, and three months later mounted a successful auction of the company. The lender was grateful for the risk-free and quick exit from the trash business.