International Industrial Inventory Services
Understanding, organizing, and managing your inventory has never been easier than with help from Value Resource Group, Inc. Whether you work in the aviation, oilfield, or machinery and equipment industry, you can always depend on our company for appraisals, as well as liquidation and auction services. All are provided by a certified team with years of experience and expertise specific to their discipline.
As one of the leading providers of industrial inventory services worldwide, we’re proud to maintain competitive prices and reasonable timing--all without compromising our integrity or work product.
Though each company within VRG offers its own individual specialization, we maintain continuity in our services through communication, standardization, and quality control. This continuity is ensured through our compliance with all requirements and regulations as set forth by the principles of appraisal practice and Code of Ethics of the American Society of Appraisers and the Uniform Standards of Professional Appraisal Practice (USPAP) as mandated by The Appraisal Foundation, as well as our own internal standards.
Best of all, our services have a number of applications:
- Ad Valorem Tax
- Asset Tagging
- Asset Tracking
- Financial Statements
- Initial Insurance
- Inventory Control
- Litigation Support & Dispute Resolution
- Market Studies
- Mergers & Acquisitions
- Partnership Forecasting
- Security Transactions
- Transfer of Property
In addition to the above appraisal services, Value Resource Group, Inc. also offers the following aviation-related services:
- Full or Sample Audits
- Inventory Management
- Market Analyses
- Periodic Monitoring
- Sales & Brokering
- Software Development
- Traceability Surveys
By utilizing data procured from a number of sources, VRG can provide catalog pricing for most aviation-related OEMs, as well as demand profiles by individual part number and market pricing.
Business Valuation Appraisals
VALUE Incorporated specializes in the application of valuation, financial, and economic theory in a variety of unified practice areas, which is a perfect complement to VRG's area of expertise. They are known for the rigorous support they develop for their opinions and conclusions, as well as their ability to communicate complex financial issues to any audience. They also understand the importance clients place on timeliness and accessibility when it comes to finishing a project.
Their staff is comprised of experienced analysts with expertise in a wide variety of situations and industries. They have served companies in almost every state and in several foreign countries. Clients include small and middle-market firms, as well as members of the Fortune 500 and various government agencies, including the Internal Revenue Service and the Department of Justice. Their consultants have all obtained graduate degrees and hold additional licenses and certifications in the fields of valuation, accounting and finance, and investment analysis.
The core of their experience and expertise is built on the valuation of financial, tangible, and intangible assets, with capabilities that satisfy valuation needs relating to businesses, securities, economic damages, as well as a variety of asset classes. Below are some of the circumstances that give rise to the valuation services they provide:
- Deal Pricing & Structure
- Due Diligence
- Exit Planning
- Financial Reporting
- Tax Reporting & Disputes
Value Resource Group, Inc.’s inventory appraisal team has conducted more than 1,800 appraisals since 1986 for financial considerations, ad valorem taxation, purchase price allocation, and litigation support. Our principals are among the country's foremost experts in inventory valuation theories, techniques, aviation parts and aircraft, and liquidation exit strategies for all of the areas below.
Retail: Retail inventory includes any product held for resale. Such inventories can range from a small, single location store to a national chain of retail stores.
Wholesale Distribution: Wholesale inventories are maintained at the next level of trade just below retail inventory. Generally, these inventories include the same items as a retail inventory (though usually in much larger quantities, and at wholesale prices).
Manufacturing: Manufacturing inventories are those with the largest quantities, and at the lowest cost. Such inventories include the following classifications:
- Raw Material: Raw material is typically the term used in a manufacturing operation to designate those commodity materials from which a final product is constructed. This can range from raw lumber in a furniture operation to magnesium used in the manufacture of fan blades, the final product of which is also a raw material to another company.
- Work-In-Process: Work-in-process is product in an unfinished stage of completion within the manufacturing process. This, by definition, would exempt classification of these products as finished goods. However, it is likely there will be items within this classification that are saleable. There are instances during an assignment in which the appraiser must analyze the cost of completing the manufacturing process. This helps determine whether finishing the work-in-process justifies the economic benefit.
- Finished Goods: Finished goods are goods in which the manufacturing process has been completed. Semi-finished goods are items considered finished goods to another manufacturer or processor, but are still considered work-in-process to the subject company. Manufacturers classify inventory in many different ways. Therefore, the appraiser must have the knowledge and experience to interpret the mix of inventory within each classification in order to measure value.
Packaging Material: Packaging material is an aspect of inventory that tends to be proprietary in nature concerning name, identification, and designs that are specific to a product or company. Therefore, an appraisal performed under a “piecemeal” concept would exclude such inventory, whereas it would be given value under an “in-use” concept. There are also typically items within this class of most inventories that are not proprietary in nature or subject to factors of depreciation or obsolescence. In such cases, these items would be given consideration under any value concept.
Slow-Moving and/or Obsolete: Slow-moving and/or obsolete inventory is primarily identified as such due to some form of depreciation. In effect, slow-moving inventory is obsolete due to physical restrictions and/or characteristics inherent in or external to the item.
Recovery of items within this classification is extremely volatile and nominal when compared to the whole. The recoverable value is affected to such an extent that, though addressed in the appraisal, they could be excluded from the value depending on the purpose and function of the report.
Scrap: Scrap can include unusable materials that have some resale value in the scrap market and are thus maintained on the books as such. However, some operations produce residual materials that are recognized as a commodity and routinely traded in the open market. Such scrap can have a high recovery when expressed as a percentage of book value.
Inventory appraisals can be conducted for any type of inventory, at any level of trade. Some examples include:
- Agricultural Products
- Aircraft Spares (Rotables & Expendables)
- Automotive Parts & Supplies
- Chemical & Petrochemical
- Computer Components
- Commodity Inventories (Chemicals, Ores, Metals, Paper Products, Plastic & Resins, Wire, & Textiles)
- Construction Equipment
- Consumer Products
- Forging & Casting
- HVAC Distributors
- Integrated Steel Mills
- Medical Equipment & Accessories
- Mini Mills
- Musical Instruments
- Office Equipment & Supplies
- Printing / Graphic Arts
- Repair Parts
- Scrap Metal
- Steel Service Centers
- Telecommunications Equipment & Components
- Wood & Lumber Products
Oil and Gas Appraisals
As part of our appraisal practice, evaluating wholesale and distribution inventories of all types for the asset-based lending community, we are encountering an upsurge in collateral-based loans secured by oilfield assets. The economic drivers are easily enough understood -- $60 + a barrel, and all of the vagaries that impact the value of the infrastructures upon which our client base maintains in its various portfolios.
In the late 1970s and early 1980s, the practices prevailing in the lending climate in almost every way paralleled what we are seeing now – a plethora of loans, both secured and unsecured, whose underlying premise was an unabated appetite for the assets needed for continued drilling of oil and gas wells.
The fallout of the relative ease in which collateral-based loans were secured in this prior climate was, of course, liquidation of assets that had been neither correctly valued nor monitored. In the late 1980s, it was not uncommon for oilfield assets to be liquidated for, literally, pennies on their “appraised” values. More common among our clients who have observed both the old and the current market conditions is a “here we go again” approach to consideration of these assets.
As both appraisers and liquidators in the last cycle and in preparation for the next, we have created a set of monitoring tools that will, at the very least, provide our client base a method of monitoring the value of this type of collateral.
SOFTWARE ENHANCEMENTS & ON-LINE LIQUIDATIONS
The development of these new software tools allows for a more precise analysis of this type of collateral in extremely large data sets and bears no resemblance whatsoever to the tools available in the last cycle. As with most markets since that time, there has been a great deal of consolidation that has drastically changed the liquidation environment, limited the number of potential buyers, and altered the general sales landscape. The movement to online liquidations is affecting this landscape in far-reaching, but unexpected ways.
VRG routinely monitors virtually every auction sale of significance conducted in the oil patch. For certain assets, however, particularly tubular goods, we have noticed a marked trend toward online liquidations. At least in the initial offering stages, this is more often the most cost-efficient means of exposing assets to the general market; this method applies even to those items that ultimately move into traditional auctions.
Equipment Appraisal Consulting
At Value Resource Group, Inc., we provide more than just appraisals. Our chief appraisers are qualified expert witnesses in inventory, aviation-related, oilfield-related (OCTG), and machinery and equipment appraisals for state and federal court proceedings, as well as other venues.
VRG understands the principle challenges our clients are facing in today’s competitive marketplace. That’s why we offer individual solutions for complex issues, such as management structure, exit strategy, restructuring, profitability through measurement of internal performance, feasibility studies, and industry reviews. So, when our clients have a problem, we identify that problem and establish avenues that support them in achieving their goals.
Industrial Asset Management
Value Resource Group, Inc.'s machinery and equipment appraisers provide clients with much more than asset appraisals. They also establish asset control programs, which can include asset tagging or other facets of asset management, such as:
- Maintenance Reporting
- Cost Accounting
- Depreciation Schedules
- Special Listings
All assets are accounted for and identified with this service. VRG's appraisers possess the unique ability to accurately describe most assets within any type of manufacturing facility. Included with appraisals are details, such as any special identifying factors that may be requested by the client, as well as others that may be deemed necessary by our appraisers. Some of these include:
- Serial Number
- Size and/or Capacity Measurements
- Auxiliary Equipment
This service is a value-added feature for our clients. Though direct measurements of the monetary advantages cannot be calculated, our clients benefit from significant time and cost savings by taking advantage of it.
Inventory Auctions & Liquidation Services
Value Resource Group, Inc. has an exclusive affiliation with Myron Bowling Auctioneers, Inc. to better service our clients’ needs in all aspects of value and recovery.
Myron Bowling Auctioneers, Inc. specializes in auctions and liquidations of industrial assets, product lines, and real property. The principal auctioneer, Mr. Myron Bowling, and his management staff provide total auction coordination from initial organization and cataloging to advertising and actual event execution. This includes:
- On-Site Client Relations
- Auction Routing
- Material Sorting & Arranging
- General Plant Cleaning
- Lot Preparation & Informational Signs
- Checkout Policies & Procedures
If a client requires liquidation, they facilitate the sale of machinery, tooling, manufacturing and office equipment, furniture, and supplies through auctions and negotiated liquidation programs. This process also involves remarketing of inventory, e.g., work-in-process (WIP), finished goods, and raw materials. It also includes the sale of product lines, specialized machinery and equipment, and electrical components.
So, whether the assignment is an auction or liquidation of a small machine shop or a large manufacturing facility, Myron Bowling Auctioneers, Inc. gives equal emphasis in providing a personalized formula for the successful disposition of their clients’ assets. By keeping abreast of the changing “values” of industrial assets nationwide, their clients can rest easy knowing they will receive the best possible prices for their assets.
Value Resource Group, Inc. recommends periodic updating of previous appraisals to compensate for different factors. Some include the inevitable changes in the mix that invariably occur in inventory, depreciation, obsolescence, expenditures, and disposals for asset appraisals. Additionally, updating appraisals can help keep you informed of market fluctuations that can affect the original value opinion.
Appraisal updates are cost-effective and time-efficient when compared with the initial investment, can be provided on a monthly, quarterly, or yearly basis, and can be performed in-house or on-site depending on your needs. These reports, as with the original appraisal, are prepared in compliance with all current regulations of the Uniform Standards of Professional Appraisal Practice as set forth by the American Society of Appraisers and mandated by The Appraisal Foundation.
Should you require an update in the same format as a previous appraisal, depending on the type, simply provide a current run of perpetual inventory and a list of any expenditures and disposals since the original appraisal. Please also let us know about any major changes or new requirements.