One of the leading UK asset-based lenders, engaged Hickman Shearer to carry out the valuation of a precast concrete manufacturing facility. The purpose of which was for the valuation to be used as security against a term loan for one of the world’s largest and well-known engineering groups.
The assets included highly automated concrete manufacturing equipment within one of the most advanced facilities in Europe. It was therefore important to conduct a site visit in order to gain a deeper understanding of the role of the individual assets within the context of the process flow.
Our overall approach centred on considering the value of the equipment in place on an ongoing operational basis. This was along with identifying the ex-situ value of the assets based on a sale from the site, while factoring in the estimated costs involved in carrying out the project.
The machinery and equipment were valued on a cost and market approach basis. Our report included detailed methodology, residual value analysis and estimated depreciation profiles to support the lender’s decision.
As a result of the detailed valuation, the asset-based lender was enabled to provide a term loan against the production machinery. This in turn allowed the business to reinvest in their state-of-the-art facility.