Wednesday, February 16, 2011

Metal, Metal Everywhere

GoIndustry Dovebid was recently engaged by an Asset Based Lender (ABL) to reappraise a large independent metal stockholder.   Following a successful implementation of an inventory facility back in 2009, the lender required a reappraisal given the fluctuations seen of late within the metal market prices.

The company operated out of 12 regional centres located throughout the UK, which together with circa £12m of inventory and over 44,000 sku’s, the level of analysis was considerable. 

Retention of Title was a key area of focus, complicated further by a well spread supplier base.  50 suppliers terms and conditions of sale were reviewed and appropriate reserves applied in order to assess and quantify the ROT reserve. 

The Company performed well since our last visit given great pressures economically seen within the UK over the last couple of years.  Our valuation was broadly in line with our prior visit, albeit slightly lower, reported within agreed timescales and employed 3 valuation team members.

For more information on the work which GoIndustry DoveBid completes please go to our website