Total Plant Deactivation ©

A DIVISION AND PRODUCT OF STUART B. MILLNER & ASSOCIATES

1) The Challenges of Closing an Industrial Plant

2) Definition of a Total Plant Deactivation (TPD)

3) The Goals of TPD Project

4) The Services

5) An Overview of the Process

6) The Results

What to expect from this presentation

• Environmental regulations

• Safety Issues

• Finding buyers for assets

• Selling real estate

Challenges of Closing an Industrial Plant

Total Plant Deactivation

The solution for these challenges?

Definition

Total Plant Deactivation TPD (tee-pee-dee) noun

1 program designed and used for a manufacturing plant closing in order

to maximize recovery of assets while managing all tasks needed to

complete project 2 a division of Stuart B. Millner & Associates

When is a TPD needed?

1. An industrial plant shuts down

2. The company needs to sell off the machinery, equipment, supplies, real estate, etc.

3. The company does NOT have the time or resources to manage the project

4. The company hires an INDUSTRIAL ASSETS MANAGEMENT COMPANY

The goals of a TPD project

MAXIMIZE RECOVERYOF ASSETS

MANAGE ALL SERVICESNEEDED TO CLOSE THE

PLANT(S)

COMPLETE PROJECT ON TIME, WITHIN

BUDGET, ZERO DEFECTS

1 2 3

What’s involved in a Total Plant Deactivation (TPD)?

• Certified Appraisal/Valuation

• Auction – Live Onsite and Online

• Negotiated Liquidation

• Recovery of Electrical Components

• Recovery of Metals

• Risk Management

• Demolition

• Environmental Controls

• Remarketing Work-In-Process (WIP)

• Sale of Production Lines

The Services

Certified Appraisal/ValuationTPD Services

How it works:

Assets are identified

Assets are given a value

Assets are placed into categories

for sale

AUCTION LIQUIDATIONPut into

accounting software

AuctionTPD Services

What auction methods are used?

LIVE ONSITE LIVE ONLINE TIMED EVENT

• In-person live event

• Traditional style auction

• Compete with online customers

• Auction customers make bids online in real time

• Compete with in-person (onsite) customers

• Each lot (asset) is posted online with final bidding time

• Bids may be placed anytime before the final bidding time

• Lot goes to highest bidder

Negotiated LiquidationTPD Services

When is it best to use this method?

• When selling HIGH-VALUE assets

• When selling assets with limited market appeal

NEGOTIATED LIQUIDATIONS give the seller

more time to compare prices and find the

right buyer for specialized equipment.

Selling Production LinesTPD Services

For exampleit’s preferable to sell a production line as a single asset.

SBMA once managed a candle production line that could not be broken up for sale.

But, sometimes…

For exampleit’s best to break up the production lines to sell individual parts or machines off the line.

The parts of a paper mill line are often easily retrofitted to a different line.

In many cases…

Remarketing of Work-In-Progress (WIP)TPD Services

• When a plant closes, there is often a surplus of products left (often unfinished)

• TPD includes the remarketing and selling of these items, whether they are finished goods or raw materials (including product parts)

Recovery of Electrical ComponentsTPD Services

SBMA professionals can identify, recover, and sell these “hidden” assets:

• Entire electrical systems

• Electrical switch gear

• Transformers

• Wiring

Recovery of MetalsTPD Services

SBMA professionals can assist with the recovery of ferrous and nonferrous metals for resale.

Risk ManagementTPD Services

What’s provided here?

• Comprehensive and liability insurance

• Required licenses

• Workmen’s compensation programs

• Tax collection

Environmental ControlsTPD Services

Why is this important?

• Closing a plant raises new environmental issues

• Most clients have little experience with the regulatory

compliance issues that arise during a TPD

What’s the solution?

• SBMA professionals evaluate the condition of each facility to

assure that the process remains environmentally sound

• SBMA teams up with some of the largest and most professional

environmental remediation companies

Real EstateTPD Services

SBMA can broker industrial and commercial real estate through negotiated sales or auctions.

SBMA is not a buyer of property and assets. That’s a different kind of business. However, there have been particular projects that SBMA determined that purchasing the property and assets was the right solution for all parties involved.

DemolitionTPD Services

If demolition is needed, SBMA works with a large network of

expert affiliates to handle any sized demolition job:

• Full plant• Partial• Selective

Overview of the Process

FROM A FULL PLANT TO AN EMPTY ONE

The Results

Stuart B. Millner & Associates (SBMA) is an industrial

asset management company with a proven record:

• Recovered over $1 billion for its clients

• Completed contracts for over 450 of the Fortune 500

industrial companies in the US and Canada

• And more…

Total Plant Deactivation

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