Challenge
Our client is one of the UK’s largest property companies. After acquiring another business, the company needed to meet accounting requirements by identifying and appraising all assets associated with the acquired company as well as its own facilities.
The scale of this undertaking presented a challenge to our client. It needed to identify, catalog, and value assets in nearly 140 categories across more than 850 sites throughout the UK. Lacking the necessary resources and valuation expertise, the client turned to Liquidity Services.
Solution
The client selected Liquidity Services to identify and appraise its assets annually. Our valuation expertise – which includes over four million assets valued across hundreds of asset categories – made us well-suited to handle this project.
As visiting 850 sites would be time- and cost-prohibitive for the client, Liquidity Services and the client determined that we would catalog and appraise assets at 75 representative sites, then extrapolate the asset information and values to all remaining sites to produce complete data for reporting. Sites were carefully selected to ensure a sample representative of the overall portfolio. Enlisting several expert team members allowed us to efficiently visit all sites in a relatively short timeline.
During each site visit, we completed a process of asset discovery supported by multiple (though incomplete) information sources from the client. We then used the findings from our onsite inspections to complete an asset schedule for each site. Tapping our vast market database and asset category expertise, we appraised all items in the schedule and completed a cost test exercise to benchmark the acquisition cost of assets and ensure a reliable valuation.
Over the past five years, we’ve expanded our partnership to include additional site visits and asset categories. We now catalog and appraise assets in up to 350 categories, more than double the original number. Our asset expertise and robust team of valuation experts allow us to easily scale our partnership to meet the client’s increasingly complex needs.
Results
In over five years of partnership, we’ve identified and appraised assets totaling more than $100 million in value. Our partnership helps the client understand the value of its assets while meeting reporting requirements. Through expertise and a consultative approach, we simplify a complex, time-consuming asset identification and appraisal process for our client. Pleased with our partnership, the client has honored us with a “Supplier & Service Partner Recognition Award.”