Monday, June 20, 2011

GoIndustry DoveBid goes for a Medical

The GoIndustry DoveBid UK valuation team carried out an interesting valuation in March.  One of our major corporate clients required a balance sheet valuation of a 2008 clinical imaging facility with a major UK hospital.    The facility uses the latest technologies in magnetic resonance imaging (MRI) and positron emission tomography (PET). Research focuses on cancer, stroke, neurological and psychiatric diseases.  The facility is GxP compliant for scanning of the spread and distribution of cancers and tumours.

The assets include:

  • 2 Siemens Cyclotron particle accelerators and a Nuclide delivery system;
  •  Hot cells, laboratories and laboratory equipment for the scale production of research drugs;
  • 2 Siemens PET scanners, 2 Siemens MRI scanners, Siemens Invivo scanner and a range of screening and other laboratory and ward assets for the scanning of drug test volunteers;
There were a number of future decontamination issues; the 2 Siemens Cyclotron particle accelerators and the Nuclide delivery system produce a level of radiation in use which contaminates both the machinery and the equipment.  There is also the liability for the eventual decontamination and removal of the assets at the end of their life.

The facility operates under the Radioactive Substances Act (RSA93); under which the operator is required to produce a Decommission Plan for the cyclotron suites and that plan is updated at 5 yearly intervals.  This was one of the first requirements of the sort in the UK in the non-nuclear sector and the first  plan was a prototype report and full of assumptions.  After consultation, we calculated the cost of decommissioning at a significant cost, just less than £1million.

All in all, a complex job with some fascinating assets and an interesting outcome.

For more information on the services GoIndustry DoveBid please see http://www.go-dove.com/

Sampling ”Uisge Beatha” (The water of life)

The GoIndustry DoveBid Valuations Team recently went north of the Border into the Scottish Highlands to sample some of the local “Water of Life”. Unfortunately the sampling was restricted to the completion of our inventory appraisals rather than the quality of the spirit held by both the whisky distillery and the independent bottler of single malt whiskies whose inventories we were appraising.

Given the bespoke nature of the inventory and the specialist market in which the client’s company operated, the commencement of our site work involved several pre-visit conference calls with the lenders credit staff and the involvement of an Independent Whisky Industry Expert whom we engaged as a Consultant to provide additional depth to our analytical work.

The independent bottling division was looking to raise working capital to facilitate the further acquisition of maturing whisky casks with the purchase to be completed by mid December. Working to very tight timescales the Valuations Team completed three separate and much bespoke inventory reports for the lender. The depth of detail within the reports which included both a going concern and a brokerage valuation ensured the deal was sanctioned within the required timescales to facilitate the completion of the cask purchase.

For further information on our experience in this sector please contact us at www.go-dove.com/valuations.

Thursday, June 2, 2011

Fashionable Food

GoIndustry DoveBid recently competed the valuation and sale of a producer of cooked, smoked and cured meats for a major UK insolvency practitioner.

GoIndustry DoveBid carried out a desktop appraisal in mid 2010, details of which were included in the proposal for a Company Voluntary Arrangement at the time. The cooked meats producer had supplied major retailers, food service outlets and public bodies. The loss of key contracts in a fiercely competitive market with continual downward pressure on price from buyers, had meant that there was not enough business to fill the 125 tonne per week capacity of the plant in Milton Keynes, Buckinghamshire, UK. Eventually, the company was not able to cover overheads, despite its agreement with creditors.

The directors and insolvency practitioners, then acting as supervisors to the CVA, asked GoIndustry DoveBid to attend on site in January 2011 to review the 2010 desktop appraisal and to submit a formal valuation report. Simultaneously, the company was offered for sale by the directors, insolvency practitioners and GoIndustry DoveBid in a combined marketing campaign.

Despite numerous enquiries, no party stepped forward to make an initial offer and the administrators were appointed in February. GoIndustry DoveBid was asked to realise the plant and machinery assets and an online auction sale closed in March 2011.

Assets for sale included meat grinders, tumblers, injectors, tenderisers, sausage machinery, smoking, steaming and roasting ovens, slicers and thermoforming packging machines as well as a wide range of ancillary service and factory equipment.

85 parties registered for the sale from 13 different countries, including Peru, Venezuela, Ecuador, India and Malaysia as well as a number of European countries including the UK and Ireland. More than 2,700 bids were received from 72 of those registered.

The sale achieved slightly higher than hoped for. More than three fifths of the gross assets sales came from Ireland, which demonstrates that ther is clearly still cash in the Irish economy, and let’s face it, whilst other sectors may be suffering, food never goes out of fashion.

For more information on the services offered by GoIndustry DoveBid please see our website http://www.go-dove.com/