Client: Leading National Provider of Asset-Based Financing Solutions
Challenge: Appraise Inventory at 200 Locations with Urgent Deadline
When the economic downturn deepened in 2008, the construction industry was one of the hardest-hit segments causing one of the world's largest building-materials firms to take a punishing blow to its equity value. With its stock plummeting by more than 90 percent that year, one of the company's primary lenders converted the cash flow based revolving credit facility to one secured by inventory. To receive the new borrowing base, the company needed an appraisal of inventory at more than 200 locations appraised in a very aggressive timeframe or face severe consequences.
Working around the clock, AccuVal completed a multi-faceted analysis and evaluation of inventory by meeting with corporate executives responsible for two operating divisions and conducting cross country inspections of thousands of SKUs. An integral part of the engagement was to help validate the quantities of inventory on hand, analyze the marketability of diverse categories of inventory and to help identify the inventory eligible for lending purposes. The appraisal process was complicated by the company's practice of routine intercompany transfers and its staging inventory on customer job sites. To help ensure success, AccuVal closely coordinated its activities with auditors and underwriters so everything needed to make sound financial decisions was communicated in real time, which would help to ensure the new loan could be made on time.
AccuVal committed to a 24/7 schedule to meet a crucial deadline. We delivered a detailed inventory appraisal supporting a new working capital line needed to continue the operations of one of the nation's largest suppliers of building materials.
The sincere desire to contribute to the success of our client partners. Depth in resources to tackle very large projects. Specific industry expertise to bring important perspective to the transaction. Coordination and communication skills. That's The AccuVal AdVantage™ at work.