Tiger Valuation Services develops all appraisal reports in accordance with the Uniform Standards of Professional Appraisal Practice (USPAP). Each unique analysis is constructed based on the specific inventory mix, sales metrics, operating expenses, and inherent risks of the business being examined. Final reports are clear, concise, and rooted in factual data supporting the hypothetical going-out-of-business recovery value supplied in the analysis.
Tiger completes the following steps for each appraisal:
Management Interviews – We believe that understanding the general operations, sales, marketing, procurement, inventory mix, and financial management practices is essential to identifying the underlying value of on-hand merchandise. Tiger Valuation’s team utilizes an unparalleled knowledge of the marketplace when collecting information for an analysis, but also regards frequent communication with company management as essential to the inventory appraisal process.
Financial Due Diligence – Appraisals are based on a meticulous review of requested data used to understand inventory mix, sales performance, margins, turnover, discounting activity, and operating expenses. Specific monitoring recommendations are provided for future use by lenders. In collateral reviews, analysts complete a detailed assessment of metrics in comparison to those provided in past appraisals.
Physical Inspection of Inventory – Tiger Valuation professionals perform on-site field evaluations of stores and warehouses. Reports include detailed notes on the presentation of merchandise in retail stores and the efficiency of the day-to-day replenishment processes in distribution centers and warehouses. We believe these visits are essential to understanding the manufacturing and distribution functions of a company.
Use of Industry Experts – Tiger Valuation maintains close relationships with experts in various industries in order to call upon their familiarity with establishing the marketability of specific types of inventory pledged as collateral. Furthermore, industry experts are strategically placed as on-site members of transaction teams.
Using each of these four key steps as part of the appraisal process, Tiger Valuation is able to create appraisal reports that provide independent, unbiased valuations of inventory balances. Reports provide gross and net recovery values that are supported by factors and risks unique to the company and specific to current industry conditions. In addition, liquidation exit strategies and collateral monitoring recommendations are offered for the consideration of asset-based lenders and other financial institutions.
But our service doesn’t end with the turnover of an appraisal report—Tiger Valuation professionals remain available to discuss any and all questions that may arise from valuation results.