Inventory Valuation

INVENTORY Valuation

Through a combination of data and experience from being involved in large numbers of retail disposition engagements we can provide an accurate value of the stock within a retail chain.

WE PROVIDE INVENTORY APPRAISALS FOR MANAGEMENT, LENDERS, INSOLVENCY PRACTITIONERS, ADVISORS AND PRIVATE EQUITY.

WE HAVE EXPERIENCE IN THE RECOVERIES FROM NUMEROUS PRODUCTS IN ALMOST ALL RETAIL CATEGORIES. OUR GRASS ROOTS RETAIL BACKGROUND MEANS THAT WE KNOW WHICH INTERNAL AND EXTERNAL FACTORS INFLUENCE TRUE STOCK VALUE. WE INCLUDE STORE, WAREHOUSE AND ONLINE CHANNELS IN OUR ANALYSIS.

We rely heavily on our retail experience to use key retail KPIs to assess sales capacity and therefore inventory value. We use our market leading analytical skills to build granular, bespoke models for each engagement. 

Our valuations take into consideration the impact of all externalities on sales capacity (e.g. store closures) and consumer demand (e.g. changes in footfall) through rigorous stress testing.

Our valuations are typically used in the following scenarios:

CVAs

Our appraisals are used by insolvency practitioners and management to determine the liquidation value of inventory for inclusion in CVA proposals. Our expert, independent view helps reinforce the integrity of the proposal.

ABLs

We provide inventory appraisals and forecast inventory collateral valuation estimates for retailers, debt advisors and asset-based lenders. These are key in evaluating the creditworthiness of the borrower’s inventory.

Our understanding of supply chain and inventory movement underpin our ability to provide a forward view of collateral, allowing visibility of the peaks and troughs in security value over the term of the loan. 

BUYSIDE VALUATIONS

We perform inventory valuations to support buy-side bids in an M&A process.

Buyers seek our help to understand the true value of inventory to inform acquisition pricing discussions. We use our experience to establish the base value of stock and we assess the recovery that the purchaser would achieve when inventory is sold through their own channels.