The Multi-Par Advantage: Solving Real Problems in Asset Liquidation

Traditional auction formats do a solid job when you’re selling standalone items. But when assets work better together — like land parcels, machine attachments, or matched sets — single-item bidding falls apart. That’s where combinatorial, or “multi-par,” auctions shine. They don’t just make bidding easier for buyers. They unlock higher returns for sellers too.

At AuctionMethod, we believe this auction format solves some of the most frustrating issues in asset liquidation. Here’s why multi-par should be on your radar.

Note: I posted a much longer LinkedIn article about combinatorial 'multi-par' auctions.

The Real-World Problem: The Exposure Risk

Imagine a farmer who wants both a skid steer and its custom blade. In a traditional auction, she might win one and lose the other. Now she’s stuck with a partial solution...and less value. This is what auction pros call the exposure problem. It happens when assets are worth more together than apart, but bidders can only place separate bids.

Multi-par auctions solve that by letting bidders place package bids. Instead of bidding on items one at a time, they can offer one price for a full set and only win if they get the whole thing.

Why Sellers Should Care

This isn’t just a better experience for bidders. It drives better outcomes for sellers too. With the right tools, multi-par formats can:

• Capture synergy value: Buyers are often willing to pay a premium for bundled assets.

• Maximize total revenue: The auction system calculates the winning set of bids that brings in the most money.

• Avoid unsold leftovers: With all-or-nothing bidding, sellers don’t get stuck with orphaned items that only made sense as part of a bundle.

Where This Works Best

You don’t need to run a spectrum auction like the FCC to benefit from multi-par logic. Here are a few use cases we see all the time:

• Farm and industrial equipment: Tractors and implements, mixers and conveyors. These are systems, not just parts.

• Estate sales: Matching furniture sets or collections of vintage items often hold value as complete groups.

• Transportation and logistics: Bidders might value regional shipping lanes more if they form a complete loop.

• Surplus recovery: Corporations can offload related items more efficiently when buyers can bid on them as a bundle.

If your assets work better together, this format works better for you.

So Why Isn’t Everyone Doing This?

Short answer: it’s hard. Multi-par auctions are notoriously difficult to build. Platforms have to solve a math-heavy challenge called the winner determination problem — figuring out, in real time, which combination of bids brings in the most money without any item getting sold twice. It’s an NP-hard problem, meaning it’s like really, really hard. It’s computationally massive!

Then there’s the user experience. If you’re not careful, bidders get overwhelmed by too many options. That’s why multi-par systems need clean, visual interfaces that simplify the experience. Think: familiar online auction format with “traffic light” bid status (green for winning, red for dead), and real-time updates that help people know where they stand.

What AuctionMethod Is Building

We’re not just excited about multi-par auctions — we’re building them. Our upcoming continuous combinatorial auction solution is designed to be:

• Fast and responsive: Real-time recalculation of winning bids with constant dynamic updating.

• Easy to use: Clean interface intuitive tools that are easy for new bidders.

• Trustworthy: Fully auditable logic so users can see why a bundle beat a single-item bid.

If you’re in the business of liquidating assets with linked value, this is a new way to run your auctions.

LEARN MORE ABOUT OUR MULTI-PAR AUCTION PLATFORM
Let’s talk about how AuctionMethod can help you unlock higher returns and better bidder experiences with smarter auction tools.