Great American serves both as an advisor and valuation expert to the retail industry and its investors. By gaining insight into the true value of a company’s retail inventory, lenders can determine an appropriate advance rate and minimize risk, corporate officers and advisors can confidently set value drivers for future transactions and investors know with confidence that they are getting what they pay for.
GA’s Retail team helps clients effectively structure the borrowing base by providing accurate recovery values and identifying potential ineligible collateral. Our valuation may be performed as part of the underwriting process and, depending on the loan terms, may be updated on a regular basis. Appraisals may also be needed as a result of changes within a particular industry or company, such as an acquisition or divestiture.
Our proven three-step inventory valuation process:
1 . Data collection and analysis: GA performs a thorough analysis of the company’s financial reports and valuation metrics including inventory levels and mix, historical sales, gross margin, and discounting activity. GA also keeps current on industry trends that impact value by monitoring factors like retail sales data, comparable store sales, and competitor performance. Finally, we compare similar appraisals from our proprietary database.
2 . Management interviews: Our appraisers hold in-depth discussions with company personnel to learn the narrative behind the data.
3 . Field visits: Great American’s professionals will visit store locations and distribution centers to gain a deeper understanding of the business and its true value.