Tangible Assets Valued; Company Secures $100 Million in Financing to Complete Buyout
Client: Printer of Newspaper & Magazine Advertising Inserts
Challenge: Assist Capital-Intensive Company with Non-Liquid Assets to Secure Adequate Loan
As part of a divorce settlement in a community-property state, one of the partners of a $100 million specialized commercial printing company needed to raise cash to buy out the ownership stake of a former spouse. The printer is one of a handful in the industry with a business unit that prints targeted advertising used in such applications as direct mail pieces, full-color inserts for newspapers and point-of-purchase displays. Since the company had previously worked with AccuVal, it asked the firm to establish a valuation of company equipment that could secure financing for the buyout.
AccuVal Approach
Appraising the equipment was complicated by the specialized nature of the company's printing presses and other equipment, and the relatively few competitors in its industry segment. Nevertheless, to determine the equipment's useful life and replacement value in a liquidation, AccuVal researched the industry, interviewed manufacturers of printing equipment, and gathered data to identify replacement value. Drawing from extensive experience with the printing industry, AccuVal also identified which plants were efficiently operating versus those that were not.
Bottom Line: Lenders Concur With Equipment Valuation, Approve $100 Million in Financing to Complete Buyout
AccuVal put together an appraisal report valuing the equipment, providing ample supporting material that would give lenders the ability to monitor the transaction. The lenders agreed and approved the transaction, enabling the partner to settle the terms of his divorce agreement.
The AccuVal AdVantage™
In-depth of experience in the printing industry. An ability to overcome unusual business situations and find innovative solutions. A name recognized by international investors, money-center banks, venture capitalists and financial syndicators. That's The AccuVal AdVantage™ at work.
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