Case Study

Calculation of future residual value of battery powered mass transport assets

Brief

A UK based lender had been approached to consider funding a fleet of electric buses. To gauge the scale and extent of the project, they asked Hickman Shearer to provide specialist advice regarding the range of potential future values.

Work

Through discussions with the lender, Hickman Shearer ascertained discrete areas where the funder required advice and support. The crux of the issue being that as the technology had not yet been fully rolled-out or seen a complete life cycle there was no valuation evidence.

Consequently, we undertook some detailed research into other similar, but more mature markets where the assets were believed to have exhibited similar behaviour.

OEMs and research institutions also provided detailed research and statements that collectively provided evidence to support our conclusions.

Outcome

As a result of our work, one important variable that could materially impact potential funding line was effectively concluded. This enabled the facility to be determined.

Insights

News & Case Studies