The Appraisal Process

Every appraisal is developed in accordance with USPAP (Uniform Standards of Professional Appraisal Practice).  However, due to the broad range of inventory and inherent risks, each appraisal is unique.  During the inventory process frequent communication with the client is essential.  Tiger’s final reports contain clear and concise facts and data to support both the Gross and Net Orderly Liquidation Value.

The following functions are completed for each appraisal.

Management Interviews – To discuss general operations, sales & marketing, procurement, and inventory and financial management practices.

Financial Due Diligence – Includes the review of requested data as well as the understanding of the inventory, sales, gross margin, and operating expense items.

Physical Inspection of Inventory – Is completed to view a representative number of locations and to further analyze the collateral.  Site visits are key to understand the manufacturing and distribution functions of each company.

Use of Industry Experts – Due to rapid change in the business world, we may consult with industry experts.  Depending upon the situation, experts are used to generically discuss an industry or as on-site members of a transaction team.  Tiger has relationships across many industries to further discuss the marketability of collateral.

Delivery of Final Report – The appraisal report provides an independent valuation of the inventory.  The GOLV and NOLV are supported by factors and risks both unique to the company and specific to the industry.  Other major features of the report include the most probable liquidation exit strategy and collateral monitoring recommendations.