QUARRY
Appraisal Economics Inc. has completed a valuation of the tangible and intangible assets of six limestone aggregate quarries and a concrete block manufacturing facility, located throughout Kentucky, after the acquisition by a global supplier of building materials. The quarries produce crushed stone and asphalt, primarily for sale in the coal mining, and road and commercial construction industries. The assets are comprised of inventory, land, machinery and equipment, mineral reserves, permits and certifications, and goodwill. Appraisal Economics was engaged to estimate the fair market value of the assets for financial reporting under Financial Accounting Standards Board (FASB) Accounting Standards Codification 805 (ASC 805), Business Combinations.
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SOLVENCY OPINION
Appraisal Economics Inc. has completed a valuation of one of the largest optical retailers in the United States. We were engaged to provide a solvency opinion to the company’s Board of Directors in connection with a $325 million refinancing, recapitalization, and issuance of a dividend. Our solvency analysis involves performing a business enterprise valuation, sensitivity analysis, and the five tests of solvency. The five tests of solvency include determining whether (i) the afair market value of the assets are greater than total liabilities, (ii) the present saleable value of assets are greater than total liabilities, (iii) ability to pay liabilities as they mature or otherwise become due, (iv) the capital remaining in the business (post-transaction) is adequate for the business operations, and (v) sufficient surplus is remaining to issue a dividend under Delaware law.
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REAL ESTATE/DISCOUNTS
Appraisal Economics Inc. has completed a valuation of a ten property hotel portfolio. The hotels, located in the Manhattan and Chicago markets, are part of a luxury boutique hotel chain owned by a closely held company with over 100 years of experience in the hospitality and service industries. The company also provides management services to five unrelated hotel properties. We were engaged to estimate the fee simple market value of the hotels for gift and estate tax planning. Additionally, we determined the fair market value of a minority interest in the company after adjusting for lack of control and lack of marketability discounts.
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ASC 805
Appraisal Economics Inc. has valued the assets of a privately held machine condition monitoring company for financial reporting purposes, in accordance with Financial Accounting Standards Board (FASB) Accounting Standards Codification 805 (ASC 805). The company is one of only a few worldwide that are devoted to machine condition monitoring through oil analysis. The company’s customers are provided with sophisticated oil testing machinery and testing services, which increase the lives of equipment and reduce machine downtime and maintenance costs. The company was purchased by a private equity firm, and we identified and valued the tangible and intangible assets, including equipment, trademarks, customer relationships, and various technologies. We also valued the company’s goodwill, which was based on our valuation of the assets, and the company’s purchase price.
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