Monday, January 17, 2011

GoIndustry DoveBid and the Great Outdoors

The GoIndustry DoveBid Valuations Team donned their outdoor gear recently and embarked on a new adventure - an inventory appraisal of a company specialising in the design, importation and distribution of branded camping and outdoor adventure equipment.
The full inventory appraisal followed the completion of a desktop inventory study in September. This was in response to an enquiry from the prospective lender as to the level of funding availability that could be generated from a stock finance facility. The company had enjoyed several consecutive years of increased sales growth, following the resurgent interest in camping and outdoor activities and the result of the ongoing expansion required urgent additional working capital.

The Valuations Team established base camp at the company’s head office and planned outings to both of their distribution centres. Within the space of five days, the team had fully evaluated the inventory and submitted to the lender a detailed inventory report which included exit scenarios based on both peak and low season stock holdings.
The lender was able to sanction a stock finance facility with the company’s £10m of inventory forming the loan collateral to provide the additional working capital needed. The stock finance facility was to operate alongside the invoice finance facility and would replace the trade finance facility, historically used to fund letter of credit based inventory purchases.

For more information contact go to our web page at GoIndustry DoveBid.

Accurate valuations picture for photo imaging

GoIndustry DoveBid Valuation Services was recently engaged by an Asset Based Lender (ABL) to appraise a manufacturer of monochrome photo imaging products. The ABL had an existing facility in place but required a re-appraisal to be carried out, as the market in which the company operates is in a general decline.
The inventory being appraised was in the form of raw materials, work in progress and finished goods, the majority of which contained traces of Silver.
Appraising the company gave rise to many challenges. Firstly, by the very nature of the product being sensitive to light, a simple test count threw up the first challenge. It is not every day that a test count is carried out in virtual darkness!
The second and most important challenge was putting value to the work in progress. It can be difficult to appraise WIP, as it's not normally clear how long it would take to convert, what the end product would be and at what price.

As a result, WIP tends to be overlooked by the majority of ABL inventory lends. However, in this case, the costs and processes involved to convert the WIP was generally low and achievable within the proposed 90 day exit. Due to the Silver content, consideration was also made to materials that were deemed slow moving or obsolete. The Silver content was quantified from the excluded inventory and added back into the overall NOLV. Finally, although raw materials were not part of the existing facility, a review was carried out with value being achieved post the review of retention of title.
Our valuation, excluding value attributed to raw materials was broadly in line with the prior appraisal. However, placing value on the raw materials, the company is hopeful that following the GoIndustry DoveBid appraisal, terms currently being offered by the ABL may be improved.

For more information on the services offered by GoIndustry DoveBid please visit our web page at Go-dove.com

Valuation of specialised metal forming equipment

GoIndustry DoveBid has successfully completed another valuation of specialised metal forming equipment for a supplier to many of the world’s leading aerospace companies.

The asset valuation was commissioned by a private investment company which has recently supported the acquisition of the manufacturing business. The asset appraisal was completed accurately and within the prescribed deadline. The rapid deployment and expert knowledge of asset valuation professionals from both GoIndustry DoveBid’s Leeds and London offices ensured a rapid turnaround to meet the client's requirements.

The assets included aluminium forming joggling presses, hot and cold presses, laser cutting cells, vertical machining centres and associated tool room equipment.
The speed and accuracy of the valuation enabled the client to make pivotal decisions based around both the machinery and equipment valuation. This is another prime example of how GoIndustry DoveBid has exercised its asset intelligence to assist others in making key strategic decisions.

For more information on our valuation services please visit GoIndustry DoveBid.