Message from the President: June/July 2009 newsletter

The first six months of 2009 have been eventful, with economic conditions
that are unparalleled in our lifetimes. As we all know, beginning in late 2008 (or some say even earlier) financial distress has struck at institutions once perceived as invulnerable. You’re all aware of the particulars: bankruptcies of iconic manufacturers, soaring unemployment, mortgage and consumer credit defaults, bank failures and bailouts, plummeting stock values … the list goes on.

To make matters worse, it seems there is “no place to run; no place to hide.” The new economic realities appear to be generally the same throughout the world. We are in the midst of what has been termed a real “global recession.”

Tranzon has not been immune from the pressures and stresses that have afflicted businesses throughout the United States. While there is a healthy inventory of properties available for auction, buyers lack the capital or credit needed to complete sales, and sellers (including banks) cling blindly to expectations of value based on appraisals that have long since become stale.

So, what are Tranzon companies doing in the face of these challenges? In short, we seem to be working harder and working smarter. We are extending our brand and presence into new geographic markets, establishing new alliances with business partners at the local and even national level, and participating in efforts to become a resource to organizations such as the FDIC as it responds to bank failures around the country. As a result, we are hopefully positioning our Tranzon companies for success when economic conditions improve - as they always do following periods of recession.

With our depth and breadth of experience, our truly national reach, and our sophistication and preeminence within the auction industry, Tranzon companies are uniquely positioned not only to survive these economic challenges, but also to thrive in the coming rebound that we await with a sense of confidence.

These are, indeed, challenging times. But they are also exciting times for a company that sees before it an opportunity to contribute importantly as the U.S. economy turns around.

On a personal note, this has also been an exciting time for me, as I join the Tranzon team and begin to work closely with the Management Committee and representatives of Tranzon companies around the country. As I said at our annual meeting in Cancun in January (only my second week on the job), Tranzon is an impressive organization comprising dedicated professionals who carry the highest standards of the auction business on their shoulders each and every day. I feel so even more strongly after a few months getting to know more members of our team. It is a privilege to be working with you.

Despite the length of this column (I promise that future columns will be much shorter !), I will mention again that we hope you will find these newsletters to be interesting and informative. I invite you to send me notes for inclusion in future issues and, in the meantime, I always invite your comments about what you would like to see in future editions of Tranzon Times.
- David Warren