Five quick questions with... Gustavo Attencia



JANUARY 31, 2020

Originally published in CONSTRUCCION Pan-Americana


Recently we interviewed in São Paulo Gustavo Attencia, commercial and industrial director from Gordon Brothers in Latin America, a company created in 1903 and the biggest asset appraiser of the world, with annual business worth US$ 70 billion. This is his testimony.

Could you explain the business of Gordon Brothers?

GA: Our core business is the asset monetization, we offer solutions in almost all segments of the market, including the construction, mining, plastic industry, automobile industry, shipbuilding, even to the retail sector where we have a lot of strength in the global market. We have specialized consultants in all these

Do you help to sell assets?

GA: In large projects, we usually purchase all the assets and then sell them to the market. Today Gordon Brothers has structure in more than 27 countries and could find the best market for the equipment. Our portfolio is very wide, as well as buying assets, we can also provide sales service, where we execute the sales
process and we charge a fee for it, or an intermediate option, where we guarantee a minimum price for the lot of assets, payment in advance, and execute sales and we share the result with the clients. We have carried out
many operations with large construction companies, mining companies,  distributors and the rental segment.

What characteristics do your customers have?

GA: Usually, a buyer of used machines does not buy new machines because it understands that it gains value with this practice. In general, they are small companies and they can have better control over equipment maintenance. They have more experience but less capital. Used equipment allow them to be competitive. It is a very large market and very demanding. Our biggest difference is the capital capacity we have, which allows us to solve problems that other companies could not.

How do you control the quality of the equipment?

GA: We have a specialized team to inspect the assets prior to purchase; we try to buy operating equipment in good quality. However, if we have a business that has equipment with mechanical problems, we can buy it, fix it and then make it available to the market. You can hardly sell non-operating assets, therefore the repair process adds value and gives liquidity to the business.

What are the advantages of working with a partner like Gordon Brothers?

GA: We are a company specializing in this subject; many companies do not have the monetization of assets as the focus of the business and need help. The first advantage is a single sale cannot have depreciation costs, maintenance costs, storage, insurance, etc. Second, avoiding market risks are volatile in Latin America due to exchange rate fluctuations, and political and economic changes. In other words, we transform assets to cash and eliminate the uncertainty of the

What markets, countries and equipment line are having more acceptance?

GA: We have a great demand in the construction, mining and agriculture markets. In Latin America, Brazil is the country with the highest demand, however, we do business in Argentina, Uruguay, Bolivia, Chile, Peru, etc. The Colombian market is growing very fast, the same as Panama and the Dominican
Republic. The equipment with the greatest acceptance is on the yellow line with low operating weight. Backhoe excavators and 20 tons excavators are examples. The crane market has been running for a season, in both new and used  equipment, this is a market with a small demand where prices start to rise.