Great American Group:
Liquid(ated) Assets

Healthcare organizations in need of an experienced, stable asset management, disposition and financial services partner needn’t look any further than Great American Group. What began in 1973 as an asset management firm dealing primarily in retail and industrial liquidations has since expanded into liquidation, auction and appraisal services for a broad range of industries, including healthcare.

Great American Group’s healthcare division provides comprehensive, customized asset management services for acute care facilities, surgery centers, radiology centers, healthcare product manufacturers and suppliers, and distributors. Those that partner with Great American Group gain the power of 30-plus years of stability, deep financial reserves, and experienced management teams that are able to quickly and effectively determine the best solutions to meet a client’s unique asset management requirements – whether it’s the need to liquidate outdated, costly or duplicate inventories, or obtain an accurate and comprehensive asset appraisal.

To learn more, read on as Great American’s CEO/partner Harvey Yellen and vice president of healthcare services Ross Ettin weigh in on what makes the company stand out amongst the competition, how Great American Group can help alleviate healthcare facilities’ economic challenges, and what the company has in store for the future.

Q: Great American Group prides itself on its decades of experience. Can you tell me a bit about the background of the company’s founder – and what led to the development of Great American Group?

Yellen: The company was founded in 1973 by Gary Mintz, who now serves as our chairman. When Gary was the chief financial officer for Whitefront Stores in the late 1960s, he was asked to liquidate that firm. It was the first time he had ever done that. That’s how he got started. Since then, Gary has done some of the largest liquidations in the country, including Grant’s, Montgomery Ward and Sears.

Q: Given the economic challenges plaguing healthcare organizations today – and the mergers and bankruptcies that occur as a result, it’s understandable why the industry has come to rely more on comprehensive asset management services. How, in particular, does Great American Group help alleviate healthcare facilities’ economic woes?

Ettin: The economics of healthcare are indeed complicated. Today, with (dwindling) reimbursement it’s quite difficult for independent facilities to keep their heads above water. As a result, we’re seeing quite a bit of consolidation. Specifically, we’re seeing integrated delivery networks purchasing independent facilities or merging with them to help them get out of the red. Many of the facilities that don’t have the opportunity to merge go through bankruptcies, and most of our business on the liquidation end is done through these bankruptcies. We do get involved with the IDNs as well, though, on the consolidation side. They may have two or three hospitals in the same area, and as a result, aren’t able to fill their census. These IDNs will consolidate those facilities into one or two and then we’ll go in and sell the assets that won’t be used within the system to create cash flow. These networks must stay cutting edge in terms of technology to remain competitive, so they are turning over their used assets quite frequently.

Q: What, specifically, sets Great American Group apart from the competition?

Ettin: We rely on our history and expertise, and we will do what it takes to make our customers happy and keep them satisfied. We also rely on our core competency and stick to what we do best, which is liquidation. There’s a negative stigma within the industry about liquidators, but we have avoided that stigma by staying committed to going out and doing what’s right. We rely heavily on our employees who come to work everyday and wear their pride – they make sure that the job will be done to customers’ satisfaction. There are situations where hospitals dispose of their surplus assets to bring in new equipment. It’s important to point out that we don’t sell that type of equipment. Great American is purely involved with selling assets that have come from facilities that have been consolidated or put out of business.

Yellen: Beyond that, we do not have a warehouse or facility to buy and store equipment. Our objective is to buy and sell. Another thing that separates us from the competition is we have the wherewithal to write the check. What I mean by that is we don’t have to operate on a fee basis. We can handle any size transaction because we have the lines of credit available to handle any size facility. Most of our competitors cannot do that.

Q: Who typically buys the liquidated equipment?

Ettin: Roughly 60 percent of the assets go overseas to emerging economies, such as the Pacific Rim, Europe, South America and Mexico. Some of the equipment also stays within the U.S. and goes to facilities that don’t have the buying power of much larger facilities. A large portion of these assets go to independent hospitals and private practices.

Q: How does Great American Group stay abreast of constantly evolving technology and get its arms around how much equipment is worth?

Ettin: We have one of the largest, most extensive databases in the industry. Our Appraisal & Valuation Services Division performs numerous healthcare valuations. We stay on top of the technology and its value by selling assets day in and day out. If you can do that, especially with the newer equipment, you will gain knowledge and maintain your competitive advantage.

Yellen: Banks and healthcare investors pay us to go in and give an appraisal for a healthcare facility, so we have to be right on with that appraisal. We are asking a bank or investor to bet on our numbers, so when we say something is worth X, it had better be worth X or more. If not, our credibility will be down the drain. Healthcare organizations rely on us to provide them with accurate numbers and valuations to validate what they’re going to pay. We are very diligent about being sure that every value we put on an appraisal is [accurate].

Another thing that lends to our credibility is that all of the teams that work with us only work for Great American Group. We rely on them to do a good job, please the client and produce for our company. Their livelihood depends on it.

Q: What does the future hold for Great American Group?

Ettin: The future of the industry is heading more toward the Internet, and Great American – which established the first live simulcast auction – will see more of its sales moving to the Internet. I think what we’ll also see in the future and within our relationships and presence within the industry is us getting more involved in the laboratory and pharmaceutical arenas, as opposed to just the acute care side. We’re seeing huge mergers and acquisitions taking place globally, so I predict we’ll see the used market going more globally as well. Today, we’re seeing a lot of equipment going overseas, but in the future I think it will actually originate overseas.