This is a presentation from Stuart B. Millner & Associates, an asset management company that specializes in industrial and power plant closings.

1. Total Plant Deactivation©
A DIVISION AND PRODUCT OF STUART B. MILLNER & ASSOCIATES

2. 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

3. • Environmental regulations
• Safety Issues
• Finding buyers for assets
• Selling real estate
Challenges of Closing an Industrial Plant

4. Total Plant
Deactivation
The solution for these challenges?

5. 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

6. 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

7. The goals of a TPD project
MAXIMIZE RECOVERY
OF ASSETS
MANAGE ALL SERVICES
NEEDED TO CLOSE THE
PLANT(S)
COMPLETE PROJECT
ON TIME, WITHIN
BUDGET, ZERO DEFECTS
1 2 3

8. 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

9. Certified Appraisal/Valuation
TPD Services
How it works:
Assets are
identified
Assets are
given a
value
Assets are
placed into
categories
for sale
AUCTION LIQUIDATION
Put into
accounting
software

10. Auction
TPD 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

11. Negotiated Liquidation
TPD 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.

12. Selling Production Lines
TPD Services
For example
it’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 example
it’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…

13. 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)

14. Recovery of Electrical Components
TPD Services
SBMA professionals can identify, recover, and
sell these “hidden” assets:
• Entire electrical systems
• Electrical switch gear
• Transformers
• Wiring

15. Recovery of Metals
TPD Services
SBMA professionals can assist with the recovery
of ferrous and nonferrous metals for resale.

16. Risk Management
TPD Services
What’s provided here?
• Comprehensive and liability insurance
• Required licenses
• Workmen’s compensation programs
• Tax collection

17. Environmental Controls
TPD 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

18. Real Estate
TPD 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.

19. Demolition
TPD Services
If demolition is needed, SBMA works with a large network of
expert affiliates to handle any sized demolition job:
• Full plant
• Partial
• Selective

20. Overview of the Process
FROM A FULL PLANT
TO AN EMPTY ONE

21. 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

22. Visit SBMA on facebook
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To learn more about Total Plant Deactivation,
visit sbmac.com