Businessweek

Ritchie Bros. Auctioneers Incorporated operates as an industrial auctioneer. As of December 31, 2011, the company operated from approximately 110 locations in 25 countries, including 43 auction sites worldwide. During 2011, it conducted 228 unreserved industrial auctions at locations in North and Central America, Europe, the Middle East, Japan, Australia and India. The company also held 111 unreserved agricultural auctions in Canada. The company sells, through unreserved public auctions, a range of used and unused industrial assets, including equipment, trucks and other assets utilized in the construction, transportation, agricultural, material handling, mining, forestry, petroleum and marine industries. Proprietary Databases: The company maintains databases containing information on equipment sold at auctions, detailed information regarding new equipment prices, and listings of stolen equipment. It also maintains a proprietary customer information database containing detailed information on approximately 550,000 unique customers from approximately 190 countries, including each customer’s auction attendance, trade association memberships, buying habits and other information. The company has conducted auctions in approximately 20 countries and regularly holds auctions in North America, Central America, Europe, Australia, Asia and the Middle East. In 2010, the company launched its 21-language Website, with features, such as zoomable photos, watch lists and other valuable features. The Website (www.rbauction.com) enables customers to interact, as well as search for and purchase the equipment they need. In total, the company had approximately 4 million unique visitors to its Website in 2011. In 2011, the company launched its detailed equipment information, or DEI, program. Ritchie Bros. Financial Services, or RBFS, a new entity in which the company has a 51% interest, was established in 2011. RBFS arranges, through third party lenders, financing options for customers to purchase equipment at auctions in the U.S. and Canada. Value-Added Services The company provides an array of services to make the auction process convenient for buyers and sellers of equipment. These services include conducting title searches, where registries are commercially available, to ensure equipment is sold free and clear of all liens and encumbrances; making equipment available for inspection, testing and comparison by prospective buyers; displaying zoomable photographs of equipment on its Website; providing free detailed equipment information on its Website for most equipment; providing financing services, as well as insurance and powertrain warranty products; providing access at its auctions to transportation companies, customs brokerages and other service providers, and online through its partner, uShip; providing facilities for on-site cleaning, painting and refurbishment of equipment; and handling all pre-auction marketing, as well as collection and disbursement of proceeds. Customers The company’s customers are both buyers and sellers of equipment, trucks and other industrial assets. The majority of its buyers are end users of equipment (retail buyers), such as contractors, with the remainder being primarily truck and equipment dealers, rental companies and brokers (wholesale buyers). Consignors to its auctions represent a mix of equipment owners, the majority being end users of equipment, with the balance being finance companies, truck and equipment dealers and equipment rental companies. History Ritchie Bros. Auctioneers Incorporated was founded in 1963.