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Question: Milwaukee Iron Auction - Lynchburg, VA

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appliedproto

Stainless
Joined
Nov 16, 2005
Location
Hingham, MA
Hi All,

Wondering if any of you are going or went to this auction today, and specifically, what did the Leifeld CNC spinner went for?

Thanks, Matt
 
I was so tempted to go, mostly for nostalgia sake... but the more I looked at the machinery for sale, there just wasn't anything there I wanted... vaguely interested in the Fanuc welding robot but that's about it. Plus it's Asset Sales doing the auction so any screaming deal possiblities are pratically nil.
 
Milacron said:
I was so tempted to go, mostly for nostalgia sake... but the more I looked at the machinery for sale, there just wasn't anything there I wanted... vaguely interested in the Fanuc welding robot but that's about it. Plus it's Asset Sales doing the auction so any screaming deal possiblities are pratically nil.
Click to expand...

Well, I'm very curious on the Leifeld. Those are big $$$, but a pretty specific application. Just wondering where they end up at for auction for future references. Regretablly, no money for capital equipment purchases this year...wah! :(
 
appliedproto said:
Well, I'm very curious on the Leifeld. Those are big $$$, but a pretty specific application. Just wondering where they end up at for auction for future references. Regretablly, no money for capital equipment purchases this year...wah! :(
Click to expand...
That's the problem with it being Asset Sales.... if it goes cheap I can guarantee you they simply bought it themselves (for resale via Charleston Annex Machinery...their used machinery division)
 
Mud said:
The Leifeild sold for $275K Story - http://www.cyrilhuzeblog.com/2009/08/28/milwaukee-iron-sold-almost/
Click to expand...


Interesting. Of course most likely the blogger is reporting the price at which Lance (auctioneer) yelled "sold"* and not what it actually sold for, which would be $308,000 ($275,000 plus 12 percent)

applied, what did it cost new ?

Rejecting $400,000 for the name sounds risky to me, as I would think the value of that name will diminish with each passing day as the brand fades from memory.

=============================

*after which he no doubt exclamed "good buy, good buy".... which usually means "wow, I haven't a clue what that is worth but we really ran that one up good"
 
Randy might be basing the value of the brand on apparel sales. Perhaps he had a backup deal in place too. Would he have to pay asset sales based on a rejected bid, or only if it sold?
 
Mud said:
. Would he have to pay asset sales based on a rejected bid, or only if it sold?
Click to expand...
Those sorts of deals can be structured differently but I would think given the overall value of the shop that did sell, he wouldn't owe Asset Sales on that rejected offer.

Probably similar to real estate auctions, where it's very common for the high bid to be rejected and I doubt most real estate auctioneers are going to collect more than their basic fees on an unsucessful auction.
 
Mud said:
Randy might be basing the value of the brand on apparel sales. Perhaps he had a backup deal in place too. Would he have to pay asset sales based on a rejected bid, or only if it sold?
Click to expand...


This is only a guess but he may have had a reserve price set on the name. It's a great name for an aftermarket motorcycle parts and apparel company, by the way, since Harley-Davidson will sue anyone using a name that they consider an infringment on their product.

If there were a reserve price, he would be able to avoid any bids below reserve and there would be no fee since no sale.
 
Milacron said:
Rejecting $400,000 for the name sounds risky to me, as I would think the value of that name will diminish with each passing day as the brand fades from memory.
Click to expand...

Did they have any presence in any part of the industry other than choppers and similar customs? The chopper thing seemed to have died for the most part well in advance of the downturn of the economy, which would sorta seem to indicate that its unlikely to make a comeback when the economy does pick back up. Unless the name has some recognition in the mainstream segment of the industry, turning down $400K would seem like a major mistake to me.
 
Milacron said:
Interesting. Of course most likely the blogger is reporting the price at which Lance (auctioneer) yelled "sold"* and not what it actually sold for, which would be $308,000 ($275,000 plus 12 percent)

applied, what did it cost new ?
Click to expand...

Not a great deal for a 7 year old machine. New, it's about $350K with the centering unit and the dual tooling. Good to know!
 
metlmunchr said:
Did they have any presence in any part of the industry other than choppers and similar customs? The chopper thing seemed to have died for the most part well in advance of the downturn of the economy, which would sorta seem to indicate that its unlikely to make a comeback when the economy does pick back up. Unless the name has some recognition in the mainstream segment of the industry, turning down $400K would seem like a major mistake to me.
Click to expand...

It might be, might not. Right now, the entire motorcycle industry is taking a downturn. Harley-Davidson for one, is tightening up dramatically. Three dealers in my locale have gone under in the past year. I've not seen a Harley dealer go out of business like that ever before and I've been around them for more than 50 years and still own one. Harley is the bellwether of the motorcycle business. When they shrink, all of the other companies that do aftermarket shrink with them and that includes choppers.

My guess is that the aftermarket, of which Milwaukee Iron was an important member, will return. It will be when the recession is over and employment picks up again. Then the discretionary income will start to flow and companies will expand again or start anew.

I think that the owner will be glad he still owns the name when the dust clears.

Just my best guess.
 
Harley D was getting money from wall street for financing the bike loans, same as sub prime mortgage money. That dried up a while back. The secondary market for these bikes has got to stink now. I can imagine all the 25K bikes that were bought 10 years ago now on the market because the then 50 year old buyers are now 60 and they can't ride anymore, due to back and prostrate problems [ha ha]
 
appliedproto said:
Not a great deal for a 7 year old machine. New, it's about $350K with the centering unit and the dual tooling. Good to know!
Click to expand...
Wow.... based on some experience with pristine machines in that price range at live auctions, I would expect a 7 year old $350,000 CNC machine to sell for around $175,000 max...esp in todays market. Rack up another sucess story for Asset Sales I guess...those guys have the magic touch...which is why I almost never attend their auctions anymore..nice folks but nearly impossible to actually buy anything for less than retail price.
 
Milacron said:
Wow.... based on some experience with pristine machines in that price range at live auctions, I would expect a 7 year old $350,000 CNC machine to sell for around $175,000 max...esp in todays market. Rack up another sucess story for Asset Sales I guess...those guys have the magic touch...which is why I almost never attend their auctions anymore..nice folks but nearly impossible to actually buy anything for less than retail price.
Click to expand...

They are a pretty specific machine, made to order. I figured it would go for a lot or practically nothing. Maybe that buyer didn't want to wait on delivery. Good thing we didn't bothering bidding on it :)
 
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