Appraisals
Machinery & Equipment Appraisals
The machinery & equipment appraisal starts with a kick-off meeting between the Co-President of the Commercial & Industrial Division and the Gordon Brothers Group appraiser that is assigned to the specific assignment. The specific appraiser assigned will be chosen based on having the highest level of relevant experience within that particular industry The machinery & equipment appraisal process begins with an on site visit by a Gordon Brothers Group appraiser for each of the requested locations.
The Commercial & Industrial Division personnel will visit the specific company locations and perform a detailed inspection of all machinery & equipment included within the scope of the appraisal. This analysis will include identifying the make, model, serial number, capacity and condition of each item being appraised. This on-site work will allow the Commercial & Industrial Division to produce a complete, detailed equipment list for each facility, which will serve as the basis for the final valuation. Additionally, while examining the assets, the Commercial & Industrial Division professionals, using their historical disposition expertise, will place estimated recoveries on a gross basis. The necessary expenses to conduct a liquidation, based upon the type of disposition concept being considered, are also estimated to produce a draft net recovery for the liquidation.
After completing the field work and producing the detailed equipment listing, the Commercial & Industrial Division will then begin the process of performing the detailed research needed to insure a proper valuation. The research will include utilizing the Gordon Brothers Group's databases for comparable sales information, reviewing previous industrial liquidations conducted by Gordon Brothers Group's personnel and performing industry specific research related to the specific assignment. The results from the various research will then be compiled to produce an estimated value for each of the items being appraised.
This draft valuation will then be presented for review by the Co-President of the Commercial & Industrial Division for final sign-off on the valuation methods and conclusions. This process allows for the final sign off on a machinery & equipment appraisal to be performed by the same person heading Gordon Brothers Group's industrial disposition. In essence, the person that writes the check on an actual industrial disposition is approving all machinery & equipment appraisals.
Inventory Appraisals
Our inventory appraisal process entails all of the specific functions found in our prevailing appraisal process with special attention given to wholesale-specific issues.
Inventory information, including units, cost and selling price, is reviewed to give Gordon Brothers Group a through understanding of markup structures by department and/or unit, how goods are sold, who the customers are and at what type of margin the goods are sold.
An analyst and manager will then meet with an inventory disposition team leader from the Commercial & Industrial Division to strategize on key issues to focus upon for the specific appraisal. This kick-off meeting aids in the direction of the analysis and focuses on three key areas.
- Coverage: Gordon Brothers Group first determines how many locations exist and what their respective inventory balances are. To the extent there are material amounts of inventory in multiple locations, we will typically visit the most significant locations. This will be coordinated with the lender and refined based upon a number of factors including amount, composition, age and type of goods.
- Retail Pricing: For goods typically found in retail stores, Gordon Brothers Group conducts field analysis on key items and their pricing in both full and off-price retailers selling those particular goods. Understanding the pricing of goods to the consumer is particularly critical as we study various formats, since some could potentially buy the goods in question for sale to their own customers.
- Current Customers: Understanding the type of product, how it is sold in the marketplace, and who the current customers are is critical to building a strategy of how a disposition of the goods would occur. By understanding the market and the potential channels for the goods, Gordon Brothers Group can formulate the best possible disposition strategy.
Gordon Brothers Group leverages field professionals with appropriate expertise in the product to be appraised. After an examination of the inventory is conducted and an understanding of pricing and placement of the goods in the stores is obtained, Gordon Brothers Group field professionals apply recoveries to the goods (gross recovered dollars) and determine the expenses needed to conduct a liquidation.
A draft of the net recovery (gross recovered dollars less expenses) is presented for review with the disposition team leader. At that meeting the team leader will review the analysis with the appraisal analyst, manager and field consultant(s), adjust the model as appropriate based upon their knowledge of the marketplace and sign-off on the final values.
