Asset Intelligence

Christmas Decorations

2012-09-10T14:35:00.002+01:00

With only 105 days until Christmas, GoIndustry DoveBid are delighted to announce the sale of Christmas decorations including nativity sets, gingerbread couples, sitting santas, baubles, nativity globes and many other items too numerous to list.

Quantities of stock and warehouse prices are shown on http://www.go-dove.com/en/event-16869/Extensive-Stock-of-Christmas-Decorations . Stock is sold subject to availability. Minimum order value is £500. Discounts of 40% from warehouse price up to £500, over £500 to £4,999 -45% discount and £5,000 plus - 55% discount All orders are subject to packing and delivery charges which will be advised at time of placing order.

For more information please contact us by following the above link.

GoIndustry Dovebid Launches New Industry Pages

2012-04-23T14:57:00.001+01:00

GoIndustry DoveBid, a leading provider of surplus asset management services, announced that it has launched new industry-focused pages on its website, www.go-dove.com, in order to highlight its service offerings to a wide range of industries. The new pages can be accessed immediately at www.go-dove.com/industry and span the industries of BioPharma, Broadcast, Computing, Electronics, Food Services, Industrial, Transportation and more.
GoIndustry DoveBid’s services provide companies with end-to-end solutions for managing their surplus assets, recognizing value and maximizing their return on investment for the entire range of industrial equipment. These services include real-time market and on-site valuations, internal redeployment solutions, and multiple sales channels. The new pages will provide more relevant information for both buyers and sellers of surplus equipment of what is available and options available to them. In addition, industry-specific details on investment recovery programs and redeployment initiatives are aimed to assist major manufacturing groups.
The new pages are organized into 8 major industry groups, with each group providing comprehensive information on how GoIndustry DoveBid can facilitate the buying, selling, managing and valuing of assets within that particular industry, along with a real-time list of featured sales events, equipment sold and news specific to that industry.
Linked to each industry group are pages dedicated to particular equipment categories. Each page displays all the top assets available on go-dove.com within that category of equipment and features a powerful search function that makes it effortless to find a specific piece of equipment.
To simplify navigation of the pages, links are provided so a viewer can browse equipment by sub-category and bookmark, share or track new activity via RSS or Twitter. Access the new pages now and bookmark them for future reference at www.go-dove.com/industry.
About GoIndustry DoveBid
GoIndustry DoveBid, with operations in more than 20 countries, is the global leader in providing asset management, online auction, and valuation services, relating to industrial equipment. Combining asset, industry, and market intelligence together with e-commerce technology, the company serves multi-national corporations, financial institutions, insolvency practitioners, and asset-based lenders throughout the world. GoIndustry DoveBid’s surplus asset management program Go-Optimize is a comprehensive set of services working together that will allow a client to systematically identify, redeploy or dispose of surplus assets. This investment recovery program includes three key components: asset appraisal, asset redeployment and asset remarketing. For more information, visit www.go-dove.com/ or follow us on Twitter at www.twitter.com/Go_Dove

Is This The Solution To The Credit Crunch?

2012-04-23T14:51:00.000+01:00

A gloomy risk outlook and hesitant consumer spending has weighed heavy on the asset finance industry, but this type of borrowing could still be the best bet for cash-strapped companies, as Dan Matthews reports.

Although it doesn’t sound like it, the term “asset finance” is actually very broad. It can refer to one of two actions: borrowing in order to buy an asset over time, such as a car or a piece of machinery, for example; or sweating an asset that you already own to release some of its value

Then there is the definition of the “asset”, which could be machinery, property, motor vehicles or just about anything with a cash value. Even money – in the form of invoices sent to trusted payers – can be used to borrow money under factoring or invoice discounting.

The important common ground is that there is a “thing of value” upon which the loan is based, as opposed to a standard loan which is offered or withheld depending on the lender’s assessment of the borrower’s ability to pay it back. Traditional wisdom dictates that this “thing” makes asset finance a good bet for lenders because they have a right to sell the asset should the borrower not be able to repay money owed. It also gives companies, like manufacturers and transport businesses, access to one-off chunks of cash if they find themselves falling behind on cash flow.

But with fewer buyers in the market, assets are harder to shift and prices are coming down. What was rated at one price ten years ago is almost certainly rated lower today.

As Patrick Wilkins, regional director at ABN Amro Commercial Finance, points out: “Assets like machinery and property are dropping in value, not because these figures are being plucked from the air by banks and lenders, but because there is a depressed demand from buyers.” It means sale and lease-back agreements are harder to come by and deals that do happen cover a smaller proportion of assets’ true value. A consequence is that bor- rowers have access to less cash than they did five years ago against the same class of asset.

“Sale and lease-back lenders are a lot coyer than they were before the credit crunch,” explains Tracey Ewen, managing director of IGF Group, which specialises in factoring and invoice discounting. “In the recession values came down and some lenders realised they had over-lent for the new economic environment.

“Since then lenders are concerned about lending more than an asset is worth, so while you might have got £8,000 for something worth £10,000 then, now it would be more like £5,000 or £6,000. It’s the same thing that happened with 100 per cent mortgages, which are fine when the market is going up, but not when it’s coming down.”

Fred Crawley, editor of Leasing Life and Motor Finance publications, agrees that there has been “a fundamental shift in recent years”, even though the market is still strong. “Funders are focusing on the serviceability of the asset finance and so the underlying financial strength of the corporate, rather than the potential re-sale value on possession,” he says.

Since the credit crunch lenders have put a lot more thought into whether borrowers can pay back, even if there is an asset mitigating the risk of a loss. The tougher lending environment and dropping assets prices mean asset backed products are looking more and more like standard loans in the way risk is calculated.

However, the news is not all bad. According to Tom MacDonald, financial services partner at Deloitte, the tightening of lending criteria is far from uniform and, both the likelihood of achieving a deal and the value of the deal, depend greatly on the asset at stake and the solidity of the business applying for the loan.

“Residual values tend to behave in cycles that are very much specific to the asset class,” he says. “For example from a vehicle finance perspective, the reduced number of new vehicle registrations during the earlier periods of the credit crunch has in some months constricted the supply of second-hand vehicles, which has limited the downside risk in terms of asset prices.”

For this and other reasons, the statistics show asset-secured lending is outpacing business banking. In 2011, business written by asset finance companies in the UK was up 10 per cent on the previous year to £19.5 billion, representing more than a quarter of all capital investment by UK firms. Commercial vehicle finance on its own was up 22 per cent to £4.4 billion.

Meanwhile, in the third quarter of 2011, members of the Asset Based Finance Association, advanced £16 billion, an annual rise of 9 percent. In contrast, lending to private non-financial companies dropped 2.3 per cent in the 12 months to the end of September 2011, according to the Bank of England.

The industry agrees that this rise in popularity is because of, not inspite of, the credit crunch. Research by Leasing Life magazine last month revealed that 86 per cent of asset finance business leaders agreed that the current increase in new business volumes was the result of businesses needing an alternative to standard bank funding.

Elaine Shelley, who runs the valuation and advisory business development team at GoIndustry DoveBid, says asset based lending appears to be increasing partly because of its “product attractiveness”. "Facilities granted on the basis of historic information will not necessarily prove flexible enough to meet the future financing needs of a business as it expands, at least without a potentially disruptive round of renegotiation,”says Ms Shelley. “Overdraft facilities can also be withdrawn at any time, which can be of concern in the current environment, when business confidence is at a premium.”
David Grier, a partner at financial consultancy Duff & Phelps, says: “In many situations asset based lending is one of the few solutions to managing growth and planning
for the future.” However, he warns: “Any transaction involving asset based lenders is likely to include a deep dive into the longevity of the organisation, the individuals who are in control of the sector and increasingly important exit routes for the lender.”

And there's the rub. Although asset finance seems to be an industry in rude health, standard lending rules apply. If you are planning to apply for this form of funding for your business, be prepared for due diligence that mirrors any other loan application
“Some lenders will accept riskier clients since they underwrite based primarily on the strength of the asset’s value,” says Mr Crawley. “But these will probably charge a higher rate of interest to cover default risk.

“Others, especially those lending against ‘soft’ assets with weak resale values such as small-ticket IT or catering equipment, will underwrite based entirely on the strength of the customer’s balance sheet.”

His advice is to be flexible and find a provider who can offer expert advice in the asset class you are buying into. The chances are, especially with a lender that is prepared to put time into a deal, that a solution can be found, he says. ABN Amro’s Mr Wilkins says only businesses with certain, easy to sell on, assets need to apply: “In order for businesses to increase their chances of securing asset finance, I'd recommend that they carefully consider the value of those assets,” he says. “For example, a bespoke piece of machinery, which can only be operated by a handful of trained experts, is going to raise much less than a more common piece of machinery because there will be fewer buyers looking to purchase it.”

Mr MacDonald at Deloitte agrees that the asset is everything. “It's an unfortunate reality that some assets devalue over time,” he says. “Anyone who has every bought a new car knows this all too well. Businesses should consider the saleability of their assets before trying to secure finance against them. “In theory, renting higher quality assets should require the lender to place less reliance on the quality of the borrowers own credit profile. Obviously a good track record of consistent payments is also helpful.”

For certain businesses, in particular those needing to buy or finance expensive kit on a regular basis, few forms of borrowing can match the asset-based variety. But whether you are able to conclude a deal or not depends on your needs, your business’s financial strength and, not least, your powers of persuasion.

This article originally appeared in a special report on Funding Britain's Growth, produced by Raconteur Media and published with The Times (UK). For further content by Raconteur Media click here.
Follow Raconteur Media on Twitter: www.twitter.com/@raconteurmedia

GoIndustry DoveBid provides a global marketplace for buyers to source used industrial equipment from multinational manufacturing and R&D companies.

Find out more at www.go-dove.com or follow us on Twitter at www.twitter.com/Go_Dove. Alternatively, register to receive alerts about upcoming events, promotions and services at https://www.go-dove.com/login.asp?targetURL=%2faccounts%2freglite.asp.

GoIndustry DoveBid goes for a Medical

2011-06-20T13:59:00.000+01:00

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)

2011-06-20T13:33:00.000+01:00

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.

Fashionable Food

2011-06-02T14:01:00.000+01:00

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/

Tangible Assets

2011-05-19T15:40:00.000+01:00

In Q2 2011, the GoIndustry DoveBid Valuations Team appraised the value of tangible assets for accounting purposes at over 1,100 various public buildings throughout the United Kingdom, primarily back office and front-of-house facilities.

Using a sampling methodology, the GoIndustry DoveBid team of seven valuation specialists visited 81 locations over a five week period. Over 130,000 individual items were inspected, categorised and graded according to condition.

Data provided by the Company was compared with our findings to benchmark it’s accuracy and a range of data points for each site were analysed to identify patterns of asset utility, lifecycle and economic life, current cost and future value, according to the data available, with the unvisited sites being categorised accordingly.

Following a final review of the assets and the appropriate accounting standard, FRS15, we used the most appropriate methodology for arriving at the Value of the Plant & Equipment to the Business of the asset portfolio. We reported an overall value in excess of £60m.

For more information of the services offered by GoIndustry DoveBid see our website go-dove.com

A Middle Eastern Production

2011-05-09T15:35:00.000+01:00

GoIndustry DoveBid were commissioned to produce a valuation of a major Middle East based production studio and television channel on the basis of Fair Market Value – Installed to enable to the client to assess an offer to purchase the company assets.

The facility included multiple television studios, offices, outside broadcast and satellite vehicles. The assets were all current technology and from tier 1 manufacturers, and included cameras & lenses; lighting; video & audio editing and post production; graphics; ingest and playout; routing, switching and distribution; transmission; archiving; outside broadcast.

Although there is a ready market in the Middle East, there is limited evidence of sales of similar facilities on the open market - the cost approach was therefore used to value the facility, with adjustments for changes in the costs of the assets and removal of any costs irrelevant to the value (e.g. training, expired software licenses and support contracts).

The valuation was completed on time and to the satisfaction of the client – we were also able to complete additional work requested by the client at short notice in order to facilitate the sales process.

For further information on the services offered by GoIndustry DoveBid

Global Semiconductor.

2011-05-06T16:49:00.000+01:00

The GoIndustry DoveBid valuation team recently produced a review of the global Semiconductor market for a major European bank. The review contained the following sections:

- Introduction

- Technology

o Recent History and Outlook

o Future Technology

o Impact on Equipment Pricing

- New Equipment Market

o Current Market and Recent History

o Equipment Purchasing & Global Trends

o Market Outlook

- Production Tools

o Process

o Equipment Types

o Major Manufacturers

- Used Equipment Market

o Current Market and Recent History

o Used Equipment Buyers

o Routes to Market

o Used Equipment Types & Pricing

o Market Outlook

- Summary

Topics covered in the report include wafer size (200mm, 300mm and 450mm or 8”, 12” and 18”) and process nodes (90nm to 11nm), geographic coverage and development, existing and new wafer fabs, tool costing and future technological developments.

This comprehensive report totals 6,500 words (excluding terms and appendices), for further details or to purchase a copy of the report please contact Matt Earl matt.earl@go-dove.com or Neil Smith neil.smith@go-dove.com.

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

Inventory Valuations Get Sticky

2011-03-11T23:07:00.001+00:00

The GoIndustry Dovebid Valuations Team was recently engaged by an Asset Based Lender (ABL) to reappraise a manufacturer of self adhesive tapes. Following a successful MBO supported by an ABL facility, the lender required an inventory reappraisal in order to assess the performance post buy-out.

The company manufacture as well as buy in adhesive tapes in various forms, with inventory on hand comprising of raw materials, work in progress and finished goods. The work in progress is mainly produced to order and therefore in its own right would generate a relatively high value in an exit scenario. Raw materials together with the factored finished goods were reviewed for ROT, resulting in raw materials being eliminated and an element of finished goods due to the easily identifiable nature of the goods.

Raw Material price pressures had resulted in margins lowering, however with inventory turn improving our overall reported NOLV % was broadly similar to our prior appraisal resulting in the lender maintaining the facility at the same level. The appraisal involved two valuers visiting the company over one site day with site work included a test count, three different cost tests, retention of title and slow moving analysis and an exit cost calculation amongst other tests.

For more information on GoIndustry DoveBid inventory appraisals then please contact the GoIndustry DoveBid Valuations Team.

Locomotive Manufacturer

2011-03-02T14:38:00.001+00:00

The GoIndustry DoveBid Valuations team was awarded an assignment to appraise the assets of a large locomotive manufacturer. The company is one of the largest North American privately held global providers of new and remanufactured locomotives, locomotive products and wheel services. This represents the first time the company was to use an asset based lending (ABL) financial structure. Additionally, the client had a very tight time frame. The Go-Dove team provided multiple values on approximately $150 million of assets encompassing 9 facilities containing over 275 acres in more than 1.3 million square feet under roof.

About the Rail Industry:

The US railroad equipment manufacturing industry includes about 175 companies with combined annual revenue of about $13 billion. The railroad equipment ("rolling stock") industry is highly concentrated: the 20 largest companies account for nearly 90 percent of revenue. The economic downturn over the past couple of years has impacted many companies in the rail industry. However, it appears the rail industry is near rolling to better days:

Modern 6 axle road locomotives have been pushed hard during the recession and are showing signs of accelerated need for overhauls.
Older Core locomotives have been stored or have had deferred maintenance to keep operating costs down. (Pay me now or pay me later). We are now at the pay me later.
Shortline Rail customers are back in the market. These customers that were short of good dependable power before the recession are coming back into the market for locomotives.
Deferred maintenance by all of the railroads is causing an increase in demand for replacement parts and services. Since a big part of the market place is shortline railroads, qualified or running takeout parts at a fair price will see increasing demand.
In May of 2010 rail traffic was increasing enough to start pulling both cars and locomotives out of storage. Railroad system velocities have remained relatively high and terminal dwell times have remained relatively low during the increase in traffic without the difficulties normally experienced in the past. It appears that both the slow recovery from the recession and the positive effects of the massive railroad CAP X programs are paying off for the railroads.

This is another prime example of how GoIndustry DoveBid has exercised its asset intelligence to assist others in making key strategic decisions for finance purposes.

On behalf of a syndicate of lenders...

2011-02-25T15:31:00.001+00:00

On behalf of a syndicate of lenders GoIndustry DoveBid was recently asked to value a large fleet of construction equipment, located in the Middle East. The scope of the valuation was to inspect a sample of the assets, collect detail on the condition of these units, to provide current market values for both a solvent and insolvent 12 month exit scenario and finally, to provide future values over the next 4 years.

We inspected the equipment at 5 different sites, and using a using a pre-defined inspection form to gather our evidence we scored factors such as tyre condition general condition of equipment and we collected information on hours and attachment. During our time on site we observed over 27% of the total fleet.

The funded portion of the fleet was all from a single manufacturer and under 5 years old. The majority of the market evidence available to us referred to equipment in the region of 10-15 years old, and any comparable ages of equipment did not correspond to a traditional depreciation profile based on the age alone. Therefore, using adjusted logarithmic trend lines from the market evidence, we produced depreciation profiles based on unit hours rather than age

We also estimated the hours on none inspected units using the company’s latest recorded hours, then we increased these by the average observed difference per model type. Future hours were calculated assuming a reducing hourly use per year. The tyre condition of none inspected items was also estimated and based on observed models and factored into the values as either uplift or write down based on the variation from the mean tyre condition. We also took account of tyre brand tier, fleet size, general condition and the local market. Depreciation profiles were produced for each model, and market evidence profiles were provided for the major models in the fleet.

The in depth analysis provided detailed information of the fleet both for the current values and based on realistic future conditions that took into account the relevant variables to value the none observed portion of the fleet.

For more information on services which GoIndustry DoveBid can offer please go to our website, http://www.go-dove.com/.

Metal, Metal Everywhere

2011-02-16T16:54:00.000+00:00

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 http://www.go-dove.com/

GoIndustry DoveBid and the Great Outdoors

2011-01-17T09:42:00.001+00:00

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

2011-01-17T09:39:00.000+00:00

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

2011-01-17T09:35:00.000+00:00

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.

Valuation of European M&A Target for US Automotive Supplier

2010-12-06T15:21:00.000+00:00

GoIndustry DoveBid has just completed the appraisal of machinery and equipment assets for a US industrial conglomerate.

This was specifically in connection with an M&A deal to acquire the business and assets of an expanding European automotive tool supplier with factories in France, Germany and Poland.

This is the second such appraisal in Q4, where this US company acquired another business in Germany and Canada. Both valuations were made on the basis of Fair Value within US GAAP rules for the business combinations.

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

GoIndustry DoveBid appoints Finlo Corrin as Business Development Director

2010-11-29T15:36:00.000+00:00

GoIndustry DoveBid is pleased to see the return of Finlo Corrin, who has joined the company as Business Development Director, responsible for all new business development in London and the South East of England, primarily in the Bank & Asset Based Lending and Corporate Recovery sectors. Prior to this, Finlo spent sixteen years at Henry Butcher, and has more recently been working as Senior Asset Manager, Europe at GE Capital Solutions and as a Partner at Sanderson Weatherall LLP.

Finlo comments: “I’m very excited to be back at GoIndustry DoveBid; this is definitely a case of ‘the right role at the right time’. The chance to work with the GoIndustry DoveBid team (David Hampson, Neil Smith, Matt Earl, and Elaine Shelley) again is a big draw, as is the opportunity to serve a larger, wider-ranging clientele. It’s great to know that we can service any asset valuation requirements anyone throws at us here, wherever it is in the world - and whatever it is.”

David Hampson, Head of European Valuation Services, adds: “I’m delighted to welcome Finlo back to the team. He joins us at a very exciting time in our development. The ability to draw on a dynamic combination of a wealth of relevant experience and an unrivalled depth of continually refreshed sales and valuation data keeps GoIndustry DoveBid’s clients better informed, at the forefront of their markets and able to assess risk with greater confidence.”

Asset Intelligence Alerts

2010-11-02T13:57:00.003+00:00

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A new spark in the global electronics industry

2010-11-02T13:51:00.002+00:00

The global electronics industry has been through a tumultuous two year
period. At the beginning of the recession, the industry hit rock bottom,
following the rapid decline in demand for consumer electronics. But
where is it today? Watch out for our special report that will be
published in our Asset Intelligence newsletter shortly.

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Tight Turnaround Secured Through Asset Intelligence

2010-10-25T14:08:00.000+01:00

GoIndustry DoveBid has successfully completed another valuation of specialist paper manufacturing machinery and equipment, this time in the South West of England.

GoIndustry DoveBid was instructed by one of the top four UK accountancy firms.

The purpose of the valuation - Administrative Receivership - was completed within a tight five-day deadline as defined by the client. The turnaround was assured through the rapid deployment of valuers from our London headquarters.

The valuation included a combination of two specialist paper machines, associated machinery and equipment. Other additional factors also had to be considered within the report: The actual site of the mill and the property which had re-development potential, which also served to colour the valuation.

The report included detailed specifications of the machines, the current state of the used paper machinery market and some significant health and safety concerns.

Through GoIndustry DoveBid’s exceptional industrial auctioneering experience, the most profitable exit strategy was recommended within the report.

As a result, the clear and detailed report enabled the client to make pivotal decisions on the future of the mill. This judgement was based upon the Asset Intelligence provided by GoIndustry DoveBid.

For more information on our valuation services, visit our valuations page.

Revaluation of Digital Book Printing Machinery

2010-10-21T12:29:00.000+01:00

Recently, the GoIndustry DoveBid valuations team completed a valuation of book printing machinery. This was for a successful producer of short run, high quality, paperback books.

The company is the proud owner of a new digital book production system which transfers information from paper reel to finished book. In addition to this key production line, there are a number of high quality conventional presses, folding machines and book binding lines.

The previous valuation was completed in early 2009, at a time of uncertainty across all industries. Whilst the economic outlook for many has improved, the general printing industry remains in difficulty, with many high quality printing presses on the market worldwide.

The reported value took a further hit this year, as the exit period was reduced at the request of the client from 120 to 90 days. Inevitably, this impacts on the time available to market some of the large printing and binding machines and therefore the values achievable. The asset appraisal report’s Interpretation of Values Section highlighted the reasons for the reduction and the benefits of having an extended exit period - true Asset Intelligence.

To discover the additional services which are offered by the valuations team at GoIndustry DoveBid visit our website, www.go-dove.com

Valuing Land Drilling Rigs in France

2010-10-21T12:20:00.000+01:00

GoIndustry DoveBid were recently tasked with valuing land drilling rigs. A small proportion of the worldwide land drilling rig population is located in Europe. The majority of these wells are located in France, where there are approximately 4000 land oil and gas wells. Most of these are in use, despite the slump in global oil prices. A favorable tax regime is a positive incentive to keeping these rigs going. However, many of the gas wells are becoming exhausted and need closing.

Productive wells require regular drilling or work-over to keep them operating efficiently, and exhausted wells have to be re-drilled prior to them being closed.

The exploration and development of new oil fields in France, provides new and exciting opportunities. In addition to this, the French Government is also supporting the geothermal energy incentive.

There are a surprisingly high number of small oil wells in the countryside East of Paris. These little 'nodding donkeys' can often be seen from the motorway. The majority of the gas wells are located in the South West of France, centered around Lacq and Pau. Some of these fields were developed over fifty years ago, bringing them close to retirement.

The European and, in particular, the French rig operation and drilling regulations are extremely strict. Although there are many used rigs on the market with Houston based dealers at this time, it can be very costly to adapt these for use in France as they are not directly comparable. The increased number of machines on the market reflects the low oil prices.

For further information please contact GoIndustry DoveBid

On the Valuation Circuit

2010-10-15T12:02:00.001+01:00

GoIndustry DoveBid has completed yet another valuation of a printed circuit board manufacturer in the U.K.

The asset valuation was carried out for both insurance and internal financial purposes; the client required an accurate highly detailed schedule of all assets on site. Through the rapid deployment of three members of the valuations team from both the London and Bristol offices, the valuation site work was completed within three days and the report was sent to the client within the time frame stipulated.

The valuation included a combination of unique assets, including flying probe testers, laser drills, and developing lines. In some cases, the assets were completely bespoke to the process.

The delivery and accuracy of the asset valuation enabled the client to present the detailed valuation report to its Insurance broker for their annual premium review.

For more information on our services please visit our Valuations website.

Using Inventory Valuation to Improve Lending Terms

2010-10-07T15:56:00.001+01:00

GoIndustry DoveBid Valuation Services was recently engaged by an Asset-Based Lender (ABL) to re-appraise the inventory of a leading manufacturer and distributor of industrial fasteners. Following the teams valuation back in 2009, the lender had put an inventory facility together and was requiring a re-appraisal to update the terms currently offered.

Our valuation covered 9 UK and Ireland sites, of which two of the largest sites by value were visited.

The task of appraising this company continues to test the powers of the spreadsheet, analysing over 100,000 SKU’s (Stock Keeping Units) spread across all of the locations. Several pivot tables, spreadsheets and charts later, the analysis enabled the valuations team to build a full selling profile of the inventory on hand which was used to calculate the appraisal reducers required to sell the inventory within the defined exit period.

At the time of our first visit, the company together with many other businesses within the UK were being affected by the global recession. Since then, the industries in which the company feed into have started to recover, resulting in an improvement of the company’s performance. This showed through in many areas of our valuation, including inventory turn and selling profile, resulting in an overall improvement in our valuation.

www.go-dove.com/valuations