One of the UK’s largest, family owned, independent livestock and speciality feed manufacturers were seeking a valuation to obtain corporate finance. They were keen to use their existing assets to underpin a lending facility. This was to enable them to embrace ongoing modernisation of the plant and to install an additional manufacturing line.
Working alongside a national property consultancy, our role was to value the key feed manufacturing equipment of the business. This involved identifying and providing a global real estate and machinery valuation to give structure to the bank’s lending decision. A large part of the valuation process involved analysing the complex manufacturing processes, production capacities and replacement costs. From this a true Market Value for the plant on an in-situ basis was calculated.
The result of the comprehensive asset valuation enabled the lender to accurately assess their risk and form a basis for their funding appetite. This in turn allowed the client to carry out vital modernisation work to the plant, allowing them to increase production levels to meet increased levels of demand.