Our Inventory appraisal services include providing appraisals for Retail Inventory, Wholesale Inventory and Manufacturing Inventory (Finished Goods, Work-In-Process and Raw Materials). We also provide risk analysis and exit strategies as part of our services. We work with clients of all sizes, tailoring our expertise to their individual needs.
We are able to bring our expertise and passion to bear in inventory appraisal assignments ranging from auto parts through to traveling luggage.
We assist Asset-Based Lenders and other financing institutions in gaining understanding of the underlying value of inventory in troubling situations. Asset-based lenders and some financing institutions require inventory appraisals to permit the lender to set appropriate lending margins and other covenants. The lenders may require inventory appraisals on an annual, semi-annual or quarterly basis. The frequency of appraisals depends on the type of inventory and the financial and operating condition of the borrower company as perceived by the lender.
Levels of Trade
Retail Inventory includes any product held for resale. Such inventories are found at the retail store level, the point of direct interface with the larger consuming public.
Wholesale Inventories are at the trade level just below retail inventory. Generally, these inventories include the same items as a retail inventory though usually in much larger quantities, and at bulk prices.
Manufacturing Inventories include the following classifications:
Raw Material, in the manufacturing environment, designates the base material from which a final product is constructed. This can range from raw lumber in a furniture manufacturing to aluminum ingots used in the manufacture of aluminum utensils.
Work-In–Process are base materials in an unfinished stage of completion within the manufacturing process. Items within this category may be of value and as appraisers we may be required to analyze the value as-is or cost of completing the manufacturing process as part of an exit strategy.
Finished goods are goods in which the manufacturing process has been completed. Final products of one manufacturing process could be the raw material or the work-in-process to another manufacturing process.
Other inventory typical of the manufacturing environment
Packaging Materials are an aspect of inventory that may be proprietary in nature concerning name identification and designs that are specific to a product or company. However, there may also be items within this class which are not proprietary in nature or subject to factors of depreciation or obsolescence. These items would be given consideration under any value concept. Appraising under a “piecemeal” concept would leave proprietary packaging materials with no value. Simultaneously if appraised under the “in-use” concept such proprietary packaging materials would be valued.
Slow-Moving and/or Obsolete inventory are so classified due to physical limitations and/or defects in the impairing the item(s) of inventory.
Depending on the intended use of the appraisal the value of this category may be excluded as the recoverable value is usually nominal.
Scrap includes unusable items that have some resale value in the scrap market. The value is usually in the composing elements of the items. However, some operations, by design or otherwise, produce residual materials which are recognized commodities and routinely traded in the open market. Such scrap can have a high recoverable value relative to book value.
Inventory Appraisals can be conducted for any type of inventory, at any level of trade. Servicing the needs of asset based lenders and financing institutions are our specialty.
How much will a Certified Appraisal cost you?
Each Inventory Appraisal is unique because of the scope of work of the appraisal. For this reason we are unable to publish a pricing schedule.
For a FREE CONFIDENTIAL FEE QUOTE with no obligations
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Within a few minutes you will learn how much a Certified Inventory Appraisal may cost.We are a Maryland registered firm of appraisers and valuers with offices in Frederick, Maryland. Our dedicated and experienced associates are at several national and international locations.