The HyperAMS management team recently came together to reflect on the past year, in which a number of high-profile, diverse asset monetization projects were completed. The HyperAMS team’s ability to deliver the “best case scenario” that created significant value for our clients was a theme throughout the year. In fact, we generated $70 million in liquidation proceeds in 2024 for companies, secured lenders and other stakeholders.
A few highlights of the year are detailed below:
Operating Plastics Recycling Company
Originally planned as an auction, our targeted advertising of plastics processor Butler MacDonald resulted in multiple offers on the sale of the business as a going concern, with the final sale price resulting in sale proceeds six times the anticipated auction price. Bob Pabst, President of HyperAMS, noted that “it is always our approach to maximize value for our clients, even if that means thinking outside of the box. The turnkey marketing approach for this project was highly effective, and the ability of our team to execute such, and generate multiple offers, is a testament to the continuing hard work and dedication of our people.”
Multi-location Dimensional Lumber & Hardwood Veneer Manufacturer
Additionally, HyperAMS was contracted to monetize the machinery and owned real estate across six Besse Forest Products dimensional lumber and hardwood veneer mills in the fourth quarter. Two locations were sold intact as turnkey offerings at a significant premium to anticipated liquidation value. The equipment auctions of the other four locations all exceeded expectations and the remaining parcels of real estate are currently being marketed for sale.
Major Stretch Film Manufacturer
Another example of HyperAMS’ commitment to achieving the highest value possible for its customers was the sale of assets owned by the stretch film manufacturer Zummit Plastics. In the days leading up to the auction, HyperAMS secured a bulk bid from a single buyer for all available assets in an amount that exceeded the anticipated auction value by approximately 70.0%.
Other Notable Auction Sales
Additionally, HyperAMS demonstrated its flexibility and multi-asset class service offerings by managing the auction of promotional products supplier Conde Systems, in which we successfully sold the inventory, equipment, and intellectual property of the company, including the totality sale of an offsite division in advance of the auction. Another successful auction included major tissue and towel manufacturer Pacific Paper, in which the HyperAMS team monetized a full plant of equipment used to convert paper into bathroom tissue and paper towels on behalf of a secured lender. While the plant was originally in a very distressed state, the HyperAMS team worked with the company to clean and organize the facility, contributing to auction values far in excess of original valuations.
Inventory & Retail Sales
In addition to auctions, HyperAMS’ Inventory Services team managed numerous inventory maximization projects and retail store closings. A few of our most notable 2024 projects included the orderly liquidation of distributor Bostwick-Braun’s aged and excess hardware and component inventory, which resulted in a complete sell through of such excess that occupied valuable warehouse space and working capital. Sales of this excess inventory on an orderly basis with two separate divisions resulted in recoveries that exceeded expectations due to a strategic solicitation program in cooperation with the Company. In addition, we served as a liquidation consultant for the final 18 store closing sales of iconic Midwest retailer The Room Place. HyperAMS also closed on a direct purchase of excess inventory and customer returns from e-bike and electronics distributor Procom that was the collateral of a prominent secured lender. Our sister business, Hyper Microsystems, is currently refurbishing the inventory as necessary and selling the goods directly to consumers. “While most people think we are mainly an auction firm due to the number of sales that we conduct in that space, inventory liquidation is a staple of our firm. This ability separates us from many of the other liquidation firms that we compete with in the middle-market and allows us to really be a full-service monetization partner for our clients,” Pabst said.
Valuation Services
Finally, our asset valuation division, Hyper Valuation Services (HVS), continued to produce high-quality inventory, machinery & equipment, insurance, and financial reporting appraisals throughout the year. Although these projects are confidential, a few major highlights included a premium granola, oatmeal, and cereal business; a high-quality, fast growing olive oil brand; a commercial solar panel distribution and installation firm; and a major manufacturer and distributor of nylon-based industrial and consumer products. HVS lent its appraisal expertise to numerous well-known clients – both large and small – ranging from private equity firms and banks to the companies appraised themselves. ”HVS had a great first year, and we continued to grow in a difficult lending environment,” said HVS President Jonathan Deptula. “We have also continued to add staff along with adding a business development professional in the southeast, Jarrett Levy, to further those relationships.”