Inventory Valuation
Services Inventory
    

Accurately determine the value of inventory

Inventory is a valuable resource upon which companies often fund a portion of their working capital requirements. In-depth understanding of manufacturing allows AccuVal appraisers to fully recognize the value associated with attributes of raw materials, work-in-process and finished goods inventories sold through wholesale and retail distribution. Appraisers can also determine the value of replacement parts businesses and differentiate the value of individual product lines. AccuVal’s experts contrast clients’ internal performance with the competitive marketplace and advise businesses on how to improve inventory management to increase return on investment.

Learn About AccuVal Appraisals
What is included in the appraisal?
  • Well-supported and defensible independent opinion of value, by inventory classification
  • Definition(s) of value serving as the basis for the valuation
  • Statement describing and explaining the purpose, scope, value definition and asset definition of the appraisal
  • Narrative of the nature of the company
  • Statement of the general condition of the assets
  • Description of the nature of the inventory and what it is used for
  • Thorough explanation of methodology, including approach(es) to value and research techniques
  • Overview of key assumptions and limiting conditions
  • Summary of the cost of raw materials and factors influencing their price
  • Discussion of the primary factors affecting the value of the inventory and key monitoring tips
  • Examination of potential exit strategies (when applicable)
  • Complete descriptions of inventory and its location(s)
  • Photographs (and video, when applicable) of inventory
What factors are considered when determining value?
  • History of the company
  • Inventory locations and staffing
  • Historical supply and demand of the inventory
  • Costs and profit margins
  • Inventory age
  • Pricing, payment terms and return policy
  • Cost of raw materials and factors influencing their price
  • Scarcity of high-demand components
  • Seasonal demand and shelf-life
  • New products and in-process research and development
  • Competitive advantages
  • Supply chain
  • Material flow and inventory controls
  • Customer base and channels of distribution
  • Sales force, catalog sales and advertising support
How do I get started?

The following is needed to determine how AccuVal can help:

  • Inventory summary, by location
  • Copy of a detailed/perpetual inventory listing
  • Finished goods turnover report (when available)
  • List of locations to be appraised with a description of inventory on-site
  • Description of the inventory management system(s)
  • Copies of past appraisals
  • Value definition(s) required

For more information or to request a proposal:

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Questions? Call 800.852.9252