Buxbaum Group Asset Appraisal, benefiting from the knowledge and experience of the Asset Recovery group, provides prompt and accurate appraisals of consumer product inventories, along with ongoing collateral monitoring services. The Asset Appraisal group has performed thousands of appraisals for leading financial institutions including Bank of America, CIT Group, Citibank, Congress Financial, GE Capital, HSBC, PNC Business Credit, Wells Fargo and Foothill Capital, appraising billions of dollars of inventory annually.

Types of products appraised include manufacturing, wholesale distribution and retail inventories of apparel, footwear, furniture, jewelry, recorded music and video, non-perishable foods, health and beauty aids, consumer electronics, and automotive parts & accessories, to name just a few.

The Asset Appraisal group provides appraisals of industrial plants, heavy machinery, and a wide range of equipment types, including warehouse/distribution, office, food service, mining, petrochemicals, distilling, printing, and many others. Clients include financial institutions, public and private companies, and bankruptcy/insolvency professionals throughout North America.

Strategy One - The Appraisal that works.

Extensive experience and proprietary financial modeling tools enable the Asset Appraisal team to not only envision more data relevant to asset value, thereby resulting in a more accurate appraisal, but also to create a strategy for collateral monitoring. We call it Strategy One.

Strategy One identifies those dynamic factors and key performance indicators crucial to maintaining inventory value going forward. Factors such as inventory mix and balance, sales trends, consumer spending habits, seasonality, cost structures and margin trends can each have some degree of impact on the value of inventory. Additionally, rising fuel, utility, and shipping expenses or supplier prices can affect cost structure dramatically; if the margin dollars generated by a company do not increase proportionately to cost increases, the inventory net liquidation value may decline significantly.

The real power of Strategy One is that it:

• Provides clear and accurate asset valuation based upon the most appropriate liquidation scenario.
• Identifies and quantifies those variables that could impact liquidation value.
• Establishes a point-in-time benchmark for these
variables. If a variable changes significantly from its benchmark, a ”yellow flag” should be raised indicating that it’s time for an updated appraisal.
• Provides user-friendly reports submitted either
in electronic or hard-copy formats.
• Offers participation in follow-up conference call
discussions and loan syndication meetings.

More and more, lenders and investment groups are realizing the added protection of ongoing collateral monitoring. Simply stated, Strategy One provides lenders with the leading indicators necessary to identify potential problems before they become too severe and seriously erode asset value. This invaluable insight can be a key in deciding whether to request additional collateral or extend additional credit not only to companies already in trouble or headed in that direction, but healthy companies whose inventories include excess or slow moving items.

Appraisals can be based on three types of scenarios:

Forced Sale Value (FSV) is an opinion of the estimated realizations at a properly advertised and conducted public auction, reflecting current day trends.

Orderly Liquidation Value (OLV) is based on the premise that inventory and other assets will be disposed of through properly advertised and professionally managed sales through normal channels such as retail stores, or in the case of a manufacturer or distributor, the wholesale customer base. Net orderly liquidation value includes a projection of the operating and liquidating expenses required to efficiently liquidate inventory over a period of time.

Fair Market Value (FMV) is a valuation or appraisal of estimated realizations in a negotiated exchange between a willing buyer and a willing seller.

Depending upon the particular market situation and other timing considerations, one type of appraisal scenario may be more appropriate than another.