| Location: |
Europe, UK |
| Market: |
Corporates & Companies |
| Asset Class: |
Plant, Machinery & Equipment |
| Challenge: |
A major US based aluminium producer was considering the future of several manufacturing facilities in Continental Europe where much of the production equipment had been taken out of use due to a reduction in demand. Our customer was concerned that under SEC rules, their assets could be overstated, and were also unsure as to their options regarding the future of the facilities. Timescales were tight and our customer required a valuation of the assets showing current Fair Value, and referring back to the relevant cash generating unit’s asset registers. |
| Solution: |
Two teams with a total of eight equipment specialists visited the sites, referenced the principal items of manufacturing equipment, reconciled the equipment with that shown in the Company’s Asset Registers and prepared valuations on the basis of Orderly Liquidation Value, and Fair Value to comply with SEC requirements. Additionally we were able to provide a separate valuation showing the likely realisable value of the equipment, if sold for removal. |
| Result: |
Our Customer was able to comply with SEC requirements with an appraisal based upon actual market data, drawn from several recent transactions of similar equipment which we ourselves had undertaken. Additionally, the Company were able to make well advised choices regarding the future of their facilities. |