Wednesday, September 22, 2010

Digital Deal Delivered for ABL

GoIndustry DoveBid Valuation Services was recently engaged by a specialist manufacturer of digital technology products. The brief was to provide them with Accounts Receivable and Inventory appraisals to assist the client in obtaining Asset Based Lending facilities.

The AR survey noted the ledger to be well maintained with a good ageing profile, although the customer concentration varied by month. Two issues were identified, deposits were taken in advance and staged billing during the manufacturing process.

The inventory comprised of components and work-in-progress (WIP) with an absence of finished goods. We learned that all WIP was against confirmed customer orders.

Through analysing the deposits received and understanding the billing structure, our specialist valuers were able to recommend monitoring covenants of the receivables to the respective lender. By completing a detailed analysis of the WIP inventory and by basing our Net Orderly Liquidation Value and exit strategy on conversion of the WIP to finished goods, we were able to fully evaluate the inventory value. This evaluation resulted in the Company receiving and accepting an offer of an accounts receivable and stock facility from an Asset Based Lender.

After the initial appraisal was completed a further take-on survey/appraisal was concluded to provide the lender with updated numbers. The update was completed, signed off and reported back to the client within two days of site work ensuring that the deal could go through credit.

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Speed and Accuracy of Valuation

Goindustry DoveBid has successfully completed another combined valuation of printing machinery and equipment.  We were also asked to complete the inventory for this company, which covered two UK sites.

GoIndustry DoveBid was instructed by the printing company to complete the valuation for insolvency purposes, due to the urgency of the matter we were required to complete the work within 5 days.  This was made possible through the rapid deployment of valuers from our offices in Bristol and London.

The valuation included printing machinery and equipment in the form of printing presses, cutters, folders and gluers and inventory comprised of raw materials in the form of unprinted paper, work in progress and finished printed goods.

The speed and accuracy of the valuation enabled the client to make pivotal decisions surrounding the sale of the business and assets.

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Tuesday, September 21, 2010

A Mature Market

Over the last few years, GoIndustry DoveBid has developed a comprehensive working knowledge of inventory within the dairy industry. We have a particular expertise in the valuation and appraisal of maturing cheese stocks and its associated by-products for Asset Based Lending purposes.

The valuation teams specialist knowledge in this area is recognised by Commercial Banks and Asset Based Lenders which has developed GoIndustry DoveBid's portfolio of cheese producers (both private label volume based and branded) which we visit to complete periodic appraisals and valuations of their maturing stocks. Over the last 6 months alone, 6 appraisals of maturing cheese have been completed and a bespoke valuation template has been developed to provide a specialist report.

The valuations enable the respective lenders to monitor the performance and value of their collateral on a Net Orderly Liquidation Value basis. The valuations include: Indexing of the current milk prices, monitoring of the maturation profile stocks, indexing of the current cheese market values, the valuation of by-products from the manufacturing process and advising on the recommended exit strategy for the inventory in a worst case scenario.

For further information on the valuations team’s experience and capabilities and what the lender risk issues are please contact Elaine Shelley or Matt Earl.

Wednesday, September 15, 2010

GoIndustry DoveBid Presses On

GoIndustry DoveBid has completed an asset valuation of a multi-national printing company, in order to conform with a new basis of company accounting.

This required valuers to attend 5 different locations throughout both West and former Eastern Europe in the space of 5 days from receiving the instruction. The GoIndustry DoveBid valuations team subsequently carried out a desktop valuation at 7 additional locations. The client received final reports within 7 working days of receiving the instruction, reporting a value of some €100 million.

Friday, September 3, 2010

The Valuation Generator

GoIndustry DoveBid has been invited by a leading financial institution to provide a detailed valuation of a 13Mw gas turbine CHP set. The plant is being installed for industrial power generation in a factory in mainland Europe.

The finance company was seeking a detailed report on issues including the economic lifecycle of the assets, lifetime maintenance costs, future value profiles, asset remarketing and pre-sale refurbishment costs.

The complex and costly maintenance of the assets means that the level of usage, quality of maintenance and time since overhaul can have a significant impact on the value of the assets.

The valuations team at GoIndustry DoveBid undertook detailed discussions with both the sales and servicing departments of the turbine manufacturer. They identified the fundamental issues with financing the assets, such as refurbishment timeline and costs, breakdown of saleable and non-saleable assets, and potential value over the asset lifetime in line with specified assumed usage and maintenance.

Broadcast Business

GoIndustry DoveBid have recently held two sales for a broadcast production company, Barcud Derwen (In Administration). Two auctions were held on consecutive days. The first sale was for over 800 lots of post production equipment, including complete editing suites in Caernarfon. There were over 240 bidders, from 30 countries.

On the second day, there were over 500 lots in Cardiff, which attracted over 200 bidders from 21 countries.

GoIndustry DoveBid works for various market-leading companies in the AV Broadcast industry, including ITV Plc, the BBC, Ascent Media, Production Resource Group Ltd, CNN and HBO. Our experience, both from an auction and a valuations perspective, is unrivalled in this area.

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