Maynards Industries offers 3-way proposals when liquidating assets through an auction method.
First, Maynards charges a buyer's premium to cover the commission on the sale of the assets. Maynards Industries will make a cash offer for the assets with the intention of taking the items to auction sale. This offer usually comes with the right to conduct an auction sale on the premises not to remove the assets to be sold elsewhere.
Second, Maynards will sell the assets on a commission basis but will guarantee a stated expected gross return less the cost to conduct the sale. Maynards charges a buyer's premium to cover the commission on the sale of the assets. If the guarantee number is reached, additional compensation goes to Maynards industries at a predetermined percentage.
Third, Maynards Industries will conduct an auction on a best effort basis without a guarantee. Maynards charges a buyer's premium to cover the commission on the sale of the assets.
Banks and lenders prefer the guarantee method of contacting an auction. This gives them the comfort of knowing the minimum return, still allows for participation in any upside to the return and puts the auctioneer into a position of backing up the projected gross return.