Friday, April 11, 2008

Weak US Dollar Makes Pre-Owned Industrial Assets Prime for Export

You’ve heard time and time again that the US dollar is at an all-time low, but did you know that the purchase of domestic assets by non-US buyers is at a seven-year high? There might as well be a sign on both US coasts that reads, “World’s Largest Red Tag Sale: 30% off!”

If you have idle or under-utilized Capital Assets and want to free up some operating capital, now is the time to react.

Foreign purchases of US companies topped $200 billion in 2007. Our appraisal division has been busy providing FLV and OLV market value appraisals for US banks that fund foreign purchases. “We are seeing overseas buyers make inroads to establish a permanent place within the US economy by purchasing operations with the intent of a continued US presence,” says John Hagist, Vice President of Appraisal Services at Loeb.

In February, Loeb provided auction coordination as well as marketing and logistical assistance to Rabin Worldwide in the sale of Jay’s Snack Foods in Chicago. Loeb helped coordinate two long term clients, LaSalle Bank, now Bank of America, and Snyder’s of Hanover sell assets from Jay’s Chicago facility. Almost 50% of the value of assets sold went to foreign buyers in nine countries: UAE, Russia, Egypt, Lebanon, Costa Rica, Poland, Argentina, Canada and Mexico.

The sale of Jay’s assets to foreign buyers continues the trend that we have seen first hand from the sale of assets from our inventory to foreign buyers; it also sets a new record that will be short-lived. If you have idle machinery, now is the time to either consign it or sell it to Loeb. The current high demand for US pre-owned industrial assets allows Loeb to pay or provide net consignment residuals higher then we have in the past. We have the knowledge and marketing ability to get your assets prime exposure around the world.