Julius Buchinsky sells his glasses
Leno de Villiers on buying the Julius Buchinsky Auction house
CAPE TOWN: I caught up with Leno de Villiers, CEO of the Julius Buchinsky Group. De Villiers bought the well known auction company at the beginning of the year and it's been quite a ride for the group in their first year under new ownership.
The company was started in the 1970s by Julius Buchinsky and quickly became one of the most well-recognised auction brands in the country, with Buchinsky's endearing chutzpah and cheeky but humorous advertising. Buchinsky's face and black rimmed glasses soon became a regular feature in most newspapers and his quirky advertising slogans like "When Buchinsky advertises everyone listens", "the King of the Cape" and the "Biggest name in the auctioneering game" drew him lots of attention.
With the auctioneering industry taking off in South Africa and Buchinsky not as young and energetic as he used to be, he felt it was time to move on. But how do you sell your business, make sure it continues with your business ethos and still remain involved in the industry? This is where Leno De Villiers comes in.
De Villiers is an investor in companies and has been doing it for more than 15 years. He currently has interests in property, construction, building materials and fractional ownership. His and his partner's modus operandi is to buy underperforming businesses with high growth potential, then restructure the companies, after which they either sell or keep equity.
Q. What made you want to enter the auction industry?
"I did not plan to enter the auctioneering industry at all. I've known Julius personally for many years. Who doesn't know Julius Buchinsky? The Julius Buchinsky Group has various divisions i.e. auctioneering, property & business brokering. I have in the past consulted on the business brokering side of the company to acquire other businesses and we've done many successful deals over the years.
"During a meeting with Julius in November 2008 (exactly a year ago), I was doing a due diligence on buying another company through the Group. Out of the blue, Julius suggested that I buy his company and that he was ready to slow down a bit - not retire. I thought about it for a few seconds, we agreed on a price, shook hands and I walked out owning a major auctioneering house. It was probably the most impulsive business decision I've ever made but after owning and managing the company for a year I can honestly say that I do not regret my decision one bit."
Q. Almost one year on - how have things gone since buying the company?
"The Julius Buchinsky brand is one of the oldest and most recognised auction houses in South Africa. Julius himself is a legend in the industry and has taught most of the current opposition auctioneers how to conduct auctions.
"The company had a highly successful track record and, apart from the fact that Julius was personally driving it, he was getting older and had to explore avenues for the business to be reinvented in order to be competitive in the demanding auction environment. Our biggest challenge was to position the company and brand in such a way that it could appeal to a broad buying and selling market with regard to all forms of capital assets, valuables and immovable properties. This I believe we have achieved within the first year, which is well ahead of our 18 month target. With auctioneering fast becoming the number one method in disposing of assets globally, we have positioned the company to be competitive throughout Southern Africa."
Are you where you want to be as a brand and a business?
"We have achieved all our objectives and goals for the business ahead of schedule and the market has responded with tremendous excitement and confidence in the group's unique way of conducting auctions. Our on-site auction strategy coupled with intelligent marketing is yielding outstanding results for the company.
"We have successfully positioned the company to be competitive and more service orientated throughout the spectrum of the auctioneering market. We have also taken on some unusual projects such as the Sentinel Mountain in Hout Bay as well as rare memorabilia, farms, private jets, boats, art and some sought after properties. The PR from some of our projects resulted in the brand being noticed globally and it has improved our investor database considerably."
Q. What were/are your biggest obstacles in the competitive auction industry?
"2009 was definitely one of the most challenging years for economies around the world. We had a good year as a group in terms of our success rate but it is evident that the global recession left its mark on businesses and the value of properties, especially the residential sector. People have to take note of the economical cycle and, if they want to dispose of properties, they have to accept that losses are inevitable and that buyers dictate in a depressed market. Our biggest challenge therefore was the economy but all the signs are there that markets are improving and that the money that was in hibernation is filtering back into the economy."
Julius Buchinsky on his new role:
Buchinsky is still active, going into the office each day, conducting the odd auction, mentoring and training newcomers and offering advice whenever his 30-plus years of experience are called on.
"I still feel this is my business, Leno has been very good to me and has allowed me to stay on and contribute in a number of different ways. He will always come and discuss new ideas with me and values my input and ideas. I am excited at the company's prospects; we are planning to introduce some innovative ideas in auctioneering during the next 6 to 12 months," he says. Write to: news@realestateweb.co.za
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