Customer Problem / Need

Customer was looking for an appraisal of aggregate equipment to help complete an SBA-backed asset-based loan.

Challenges

The challenge with this project was a quick turnaround time while contemplating a fair market value in-place evaluation, a scenario in which the appraiser evaluates assets based on a willing buyer who will buy the assets and use them where they currently sit. Additionally, the current owner of the assets did not want an inspection during normal business hours when his employees would be on-site.

Solution

The solution we found to this challenge was to do as much pre-inspection research as possible so while on-site we could narrow the need for additional information. We toured the multiple locations after normal business hours and before sunset due to safety concerns at the locations. We also identified experts in the aggregate industry to speed up the due-diligence post inspection timing.

Background

The business we were appraising is a second-generation aggregate producer that has been operating for over forty years, they specialize in producing aggregate and are a supplier of limestone, sand, and gravel products.  

Total Yard Area: Approximately 40 acres

Timeline: Bank wanted a report furnishedten days after inspection was concluded

Outcome: We were able to inspect the multiple yards within a week of the executed engagement letter. We were able to study the research and determine both a fair market value in-use and liquidation value within a week of the initial inspection. The report was finished and accepted by the bank within the required ten-day timeline and the bank was ultimately able to complete the loan which allowed one owner to retire and another to acquire the business and retain the current employees.

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