Timeline Asset Services Ltd: Appraisal Info
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We can say with confidence—no matter what it is, or where it is, we know what it's worth

This page is your “one-stop” for general information on our appraisal work.

To find out how our services apply to your particular profession or industry, use the navigation bar above to go to your area of interest.

On this page:

Our Expertise & Experience

Valuation Methods

Types of Appraisals

The Appraisal Process

Your Appraisal Report

 

Our Expertise & Experience

We’ve appraised a vast array of assets and inventories in hundreds of different facilities and in every conceivable business scenario. We can say with confidence—no matter what it is, or where it is, we know what it’s worth.

From a quick review of a single asset, to detailed documentation on complete facilities, we guarantee professional and accurate appraisal reports conducted and delivered on your timeline.

You can count on our expertise in the following industries and asset categories:

  • manufacturing & production
  • logging, pulp & paper, lumber
  • construction
  • transportation
  • marine
  • pharmaceutical & medical research
  • mining
  • restaurant & food services
  • retail operations
  • heavy equipment
  • rolling stock & vehicles
  • warehouse & material handling
  • assembly & production line
  • metal working
  • wood working
  • audio/video & electronics
  • laboratory & research testing
  • networking & computer products
  • software
  • kitchen & food preparation
  • furnishings & displays

...and more


 

Valuation Methods

So, how do our appraisers know what it is worth?

A primary consideration is the valuation method that will be applied to appraise the assets and inventories.

There is no single value for any item, its value will change depending on the business circumstances that govern how the assets are being viewed. For instance, the Replacement Value for an item will not be the same as the Liquidation value of the item if it were to be sold on the open market.

Our appraisers are knowledgeable in all types of valuation methods, and will appraise the assets based on your needs for each particular business scenario. All of our appraisers are accredited by and are members in good standing with CPPAG.

Read on for an explanation of the different types of valuation methods and when they are applied.

 

Fair Market Value (FMV)

This is the value at which the item(s) would change hands between a willing buyer and a willing seller, neither being under the compulsion to buy or the compulsion to sell; and both having reasonable knowledge of the relevant facts.

FMV depends upon actual worth in the market place and not upon theoretical worth. It is determined by the actual selling price of the item(s), sale of comparable items, and the cost of reproduction. The time of appraisal and the supply and demand of the particular item(s) in the market place may also affect FMV.

 

Liquidation Value (LV)

This is the value of the item(s) when part of an arm’s length transaction with limited time to complete this transaction, and is usually below the FMV.

In most cases, there are circumstances that force the sale to occur (e.g. financial conditions, Bankruptcy, Receivership, Bailiff Seizure, Lease Termination, etc) and bring the item(s) into the market place to be sold to the highest bidder.

In determining LV, consideration is given to method of liquidation, time available, current market conditions and any other case specific factors that could affect value. This value is often perceived as a “worst case scenario” value.

 

Replacement Value (RV)

This valuation represents the cost of replacing the item(s) after being lost or destroyed and is commonly used for insurance purposes.

The reported value is based on both new and comparable pre-owned item(s) and can include consideration for transportation, installation and upgrades required to a premises to accommodate the new item(s). The value determined is the cost of replacing the item(s) based on its pre-loss condition.

 

Actual Cash Value (ACV)

This is Replacement Value (RV) of the item(s) less depreciation.

 

Market Value—In Place (MVIP)

This is an opinion of the estimated value to be realized for the item(s) as installed or in place for the intended use, in an exchange between a willing buyer and a willing seller.

In this scenario, neither buyer nor seller is compelled to either buy or sell, and both parties are aware of the relevant facts as of the date of the appraisal.

One method of arriving at this valuation, is to assess either the LV or FMV and add an allowance for installation, necessary electrical and mechanical infrastructure and enhanced values to any customized or site-specific item(s) that at Liquidation Value would be assessed at salvage value only.

Note: this type of valuation does not usually take into consideration any leasehold improvements unless they are specifically related to the function of a particular piece of equipment, or covered under a security agreement.

 

Going Concern Value (GCV)

This is the value obtainable for the item(s) through private negotiations between a willing buyer and a willing seller on a total entity basis in order to continue operations in place.

These negotiations are usually not restricted by time and therefore can take the longest to complete. While there is no consideration given to the financial health of the company, this valuation takes into account future opportunity within the market place based on location, product lines, asset and leasehold durability and longevity.

In most cases, GCV will be greater than any other value provided.

 

Net Orderly Liquidation Value (NOLV)

This is an opinion of value of net returns from a systematic and orderly wind down of a company’s operations and sales. Finished goods, WIP, raw materials and capital assets (owned or lease equity) are all considered in determining this value. These factors are typically evaluated within a 90 to 180 day window in the determination of NOLV.

 

Desktop Opinion of Value (DV)

This is an opinion of value based on information supplied to the appraiser and evaluated without the benefit of viewing the assets: e.g. asset photo and/or description-only provided.

This is also considered a type of appraisal, and is one of the services provided by TAS.

 

 

Types of Appraisals

While there are at least eight different types of Valuation Methods (see above section), TAS generally conducts three different types of Appraisals:

  • Full/Detailed
  • Summary Valuation
  • Desktop Opinion of Value

Below are descriptions followed by a chart showing the steps and timeline to complete an Appraisal.

 

Detailed Appraisal

This is the most common form of appraisal, which provides a line by line listing of assets, inventories, chattels, leasehold improvements and third party goods stating an individual value for each.

The report will follow a logical order through each location within the facility and the appraiser will document everything deemed to have value. The report may include a photo log of all listed assets or significant assets only.

This type of appraisal requires time on-site—which will vary depending on the size and complexity of operations—and will always provide the most accurate valuation.

 

Example 1:

A manufacturing facility is offered for sale. The asking price is $2.5 million and asset value is stated at $850,000.

From a Lender’s perspective, your client wishes to finance the purchase of the business. A detailed appraisal will provide an independent assessment of this value and ensure that the assets aren’t over valued in this scenario.

Conversely, from a Lawyer’s perspective assisting your client in the sale of the business, the company may have understated the value of the assets and a detailed appraisal will determine that an accurate asking price is attained.

In addition to providing value, the detailed appraisal always produces an accurate listing of assets that can also be used in current and future negotiations.

 

Example 2:

The above manufacturing facility is in Bankruptcy.

From an Insolvency Professional’s perspective, you need to get maximum value for the creditors. A detailed appraisal will show specific values for individual items and help determine disposition tactics of the assets that yield the highest returns.

 

Summary Valuation

This is an option to a Full or Detailed Appraisal when there are constraints of time, money and/or access to the assets and you need to make some major decisions in a relatively short time. It provides a cost effective snapshot of value useful in determining next steps or future actions.

A walk through of the premises will yield aggregate values without the time and cost of a lengthy inspection.

 

Example 1:

You are dealing with an ongoing retail operation and a full appraisal would be disruptive to business or cause undue concern among employees. In this circumstance, the appraiser would enter the premises as a “secret shopper” and prepare the appraisal report based on first hand observations with or without a detailed listing of assets provided.

The appraiser can also provide a range of value for the inventories giving a cost vs. retail total dollar amount.

 

Example 2:

The business to be appraised is a large manufacturing facility, but you need the appraisal report tomorrow; there isn’t time to assign valuations to each asset.

This is an ideal circumstance for the appraiser to conduct an inspection of the premises noting condition of the assets and then prepare a report estimating the aggregate value of the assets.

 

Desktop Opinion of Value

A third reporting option, this is ideal if you need near instant turnaround and don’t require a visual inspection of the assets. The appraiser’s opinion is based on documentation (photos, lists and descriptions) supplied by the client. An abbreviated report is sent by email and an electronic signature supports the findings.

 

Example:

The assets of a logging facility in Northern BC need to be appraised. You instruct your on-site contact to take digital photos and prepare a list of the assets. With that information, TAS provides an abbreviated report in short order.

We can also provide a full detailed report if the information submitted is sufficiently detailed.

 

 

The Appraisal Process

No matter where it is, or what it is, the TAS Appraisal Process essentially remains the same, and the following chart shows the flow and timeline for the overall process.

* A Summary Valuation is an option to a Full Appraisal if there are constraints of time, money and/or access to the assets. It provides a cost effective snapshot of value useful in determining next steps or future actions.

Note:  A Desktop Opinion of Value will turnaround in <1 business day after info (photos, lists and descriptions) is supplied to TAS by you or your client. An abbreviated report is returned by TAS via email and an electronic signature supports the findings.

 

 

Your Appraisal Report

 While each appraisal report is tailored to your specific requirements, common components are:

  • summary of appraisal report
  • conditions and limitations which qualify the report
  • description of the assets and property (may include photos)
  • statement of purpose i.e. why the appraisal was conducted
  • method(s) and definition(s) of valuation used to generate the report
  • basis of the appraisal supporting the conclusions of the report
  • other factors affecting value
  • specific observations outside the scope of value
  • disposition or liquidation recommendations (as applicable)
  • analysis and/or conclusion
  • certification of the report by signature of the appraiser
  • qualifications of the appraiser

 

Report Formats

If you would like to see a sample appraisal report, go to the Contact Us tab and read how.

Type of Appraisal

Documentation

Available Formats

Full/Detailed

A. Summary Report with

Appendix Listing of Assets

-Summary in MS Word or pdf

-Appendix in MS Excel* or pdf

 

*An electronic version of the Appendix in MS Excel, if requested, allows the client to analyse the data independently.

or

B. Combined Report (preferred format for CSBFP files)

-Summary and Asset Listing in a single document MS Word or pdf

 

C. Photo Gallery (if included)

-CD

-zip file

Summary Valuation

Summary Report

-MS Word or pdf

The above reports can also be posted to a discreet URL to be accessed by you and your client at any time

Desktop Opinion

Abbreviated Statement of Value

-MS Word or pdf by email only