Originally aired May 4, 2010. This webinar is essential for anyone involved in lending on inventory collateral. This one-hour session will explain the valuation process conducted for a standard orderly liquidation value inventory appraisal, including raw materials, work-in-process, and finished goods. It will also discuss the development of exit strategies and liquidation expense structures.
Participants will learn about:
· Categorical valuation of raw materials
· Using research and historic liquidation comps to value inventory
· Sample valuation and statistical anomalies
· What is work-in-process and how to consider it in the valuation
· "As-is" versus "as-complete" considerations – kitting, packaging, branding, and the build out
· Detail turnover analyses, including consideration of sales, open orders, usage, ageing, and purchase data
· Months on hand, ageing, and general turnover ratios
· Prime, secondary, surplus, salvage, and scrap values
· How to handle excess obsolete reserves
· Reconciling the appraisal to the borrowing base
· The role of customers in liquidations
· The liquidation period
· Logistics and marketing
· Expenses considered and not considered
Presented by: Alex Sutton, Vice President, AccuVal Associates, Inc.