Selling an Art Collection to Help Start a New Chapter
Client Profile
Over several decades, a collector had built a diverse collection of contemporary and 19th century European antiquities and decorative art. After a divorce, children going off to college and a home downsizing, she decided to simplify her life by streamlining her expansive collection. Having only purchased art, she didn’t know how to navigate the selling process.
Approach
The Bank of America Private Bank Art Services group and a private client advisor met with the collector to discuss her art collection and her broader financial objectives. Impressed by the firm’s integrated approach to wealth management, she began an investment management relationship with Bank of America Private Bank. The Art Services group then re-engaged with the client to develop a sales strategy for the art collection. They explained that approaching an auction house directly could result in significant seller fees.
Therefore, to help the client attract some of the best potential buyers and competitive auction prices, the Art Services group recommended that she take advantage of Bank of America Private Bank Consignment Services.
- The Art Services group created a collection inventory and helped the client identify a group of works that she wished to sell.
- The team orchestrated conversations and site visits with three leading auction houses to establish the client’s selling objectives and to gauge interest.
- After receiving competitive proposals from each auction house, the Bank of America Private Bank team prepared a side-by-side comparison of their offers for the client.
Solutions
After reviewing the offers from the three auction houses with her advisor, the client chose the one providing the most advantageous overall package.
- Through its master consignment agreements, the Art Services group was able to eliminate the seller’s commission and fees on the lots sold.
- The group then coordinated with the auction house to arrange for transporting the property to the sale room so the works could be photographed and catalogued before the auction deadlines.
- The works were subsequently sold in a combination of New York and London auctions.
Results
By working with her her private client advisor and a team of art specialists, our client:
- Took advantage of Bank of America Private Bank’s relationships with auction houses to secure a favorable contract from an auction leader.
- Saved significantly on fees compared with going directly to an auction house.
- Connected with an audience of buyers who appreciated the collection, which may have led to overall higher bids and profits.
Bank of America Corporation’s Commitment to the Arts
Bank of America Corporation’s Arts & Culture program reflects its belief that the arts matter.
Bank of America Corporation supports nonprofit arts institutions globally that deliver visual and performing arts, educate and inspire, anchor communities, create jobs, and sustain local businesses.
Through its Art in Our Communities® program, Bank of America Corporation has lent more than 100 full exhibitions to nonprofit museums throughout the world at no cost. Museums in 28 countries have preserved nearly 100 works of historic and cultural significance through our Art Conservation Project. For individual patrons, our Museums on Us® program has let millions of people enjoy no-cost admission to popular cultural institutions.
Learn more about our commitment to the arts at bankofamerica.com/arts.
This page is designed to provide general information about ideas and strategies. It is for discussion purposes only, since the availability and effectiveness of any strategy are dependent upon your individual facts and circumstances. Always consult your independent attorney, tax advisor, investment manager and insurance agent for final recommendations and before changing or implementing any financial, tax or estate planning strategy.
The case studies presented are hypothetical and do not reflect specific strategies we may have developed for actual clients. They are for illustrative purposes only and intended to demonstrate the capabilities of Bank of America Private Bank and/or Bank of America. They are not intended to serve as investment advice since the availability and effectiveness of any strategy is dependent upon your individual facts and circumstances. Results will vary, and no suggestion is made about how any specific solution or strategy performed in reality.
Keep in mind this asset class may not be appropriate for all investors and can be a component of an overall investment strategy. Leveraging art involves risks including lack of liquidity and yield production and may restrict some movement and lending of the artwork. If default, sale of the collateral could result in distressed circumstances.
Credit facilities are provided by Bank of America, N.A., Member FDIC, its subsidiaries or other bank subsidiaries of Bank of America Corporation, each an Equal Opportunity Lender.
All loans and collateral are subject to credit approval and may require the filing of financing statements or other lien notices in public records. Asset-based financing involves special risks and is not for everyone. When considering an asset-based loan, consideration should be given to individual requirements, asset portfolio composition and risk tolerance, as well as capital gains, portfolio performance expectations and investment time horizon. A complete description of the loan terms will be found in the individual credit facility documentation and agreements. Clients should consult with their own independent tax and legal advisors.
Diversification does not ensure a profit or protect against loss in declining markets.
