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.