A tier one supplier of manufactured, structural metal components and assemblies in the automotive industry had a range of equipment that required an appraisal report by its management every year in order to determine the timely value of its assets. The range of equipment was large and diverse; this consisted of large bed/large tonnage presses, robotic spot/mig welding cells, frame lines, e-coat systems, and material handling equipment. The inventory of products included body structure stampings and frames and chassis structures for a variety of car sizes, along with crossover, pick-up, and SUV platforms. This posed a unique challenge and required a qualified vendor to assist with the appraisal process.
The automotive supplier engaged, a Liquidity Services. With its team of seven qualified appraisers, Liquidity Services inspected all of the 14 locations throughout the U.S., a total area of 5 million square feet. Utilizing its up-to-date database of market value on more than 500 categories of product and equipment, Liquidity Services facilitated a comprehensive valuation.
In the short span of six weeks — from contract engagement to conclusion — the Liquidity Services team addressed an orderly liquidation value and value in-place for the automotive supplier. This helped the company to understand the current value of its total assets and products. The company has since continued on an annual contract with Liquidity Services, providing our team of experts with an opportunity to demonstrate the year-over-year value on assets and determine trend lines. This valuation service has proved to be useful for the automotive supplier in deciding how to manage its equipment and inventory more efficiently and make smarter decisions for its business in the changing automotive industry.
The valuation service provided has helped the company in deciding how to manage its equipment and inventory more efficiently and make smarter decisions for its business in the changing automotive industry.