Present Value: More than an Appraisal Firm

Following up on our press release that went out on Tuesday, December 8, 2009, we’d like to focus a little bit more on some of the characteristics that make Present Value a unique full-service appraisal firm.

While lenders and business owners have many choices when it comes to finding an appraisal company, at Present Value, we pride ourselves on being more than just a company that provides appraisals: we act as a trusted resource for lenders and business owners. We can act as consultants to help guide our clients as they make crucial business decisions, whether it be a lender, looking to conduct pre-loan due diligence or auction assets from a loan default, or a business owner, looking to obtain financing or make an acquisition.

In addition to providing appraisal services, Present Value has the expertise and experience to orchestrate other aspects of these deals. The strength of our services comes from the partnerships that we have developed all across the country. We have the capabilities to bring the right people to the table for whatever our clients’ needs may be, such as auctioneer services or brokerage services. We aim to be problem-solvers for each and every one of our clients, helping them make well-informed business decisions.

Present Value prides itself on its turnkey service offerings, and Present Value is happy to act as a resource for its clients as they cope with past mistakes and look toward improving their processes. Our network of professionals will always deliver the highest quality products, backed by a team of experts in their individual market segments.

By: Present Value

Tags: appraisal, appraisal management company, business decisions, business owners, Business Valuation, lenders, Machinery and equipment appraisal, present value
Posted in Equipment Auctions, Press release, business appraisals, business broker | 1 Comment »

Lenders Turn to Present Value LLC for Pre-Loan Due Diligence

Lenders got a wake-up call this year. When times were good, trust and a cursory background check were often enough to secure a deal between a lender and a client, but after getting hurt this year by clients defaulting on their loans, lenders are working hard to make sure that any risks they take are calculated ones. “Lenders are still making money available,” said Chris Kinzie, co-founder of the appraisal firm Present Value LLC, “but they are more careful to do their due diligence first.”

As part of the pre-loan process, lenders need to ensure that their investment is sound and that they can recoup their money should a client default on a loan. This is where a certified appraisal becomes important. “Hiring an appraiser can reduce a lender’s liability,” said Chris Spinelli, Present Value co-founder. “We’ve heard horror stories about lenders who did not do appropriate research, which resulted in liquidation and huge losses for the lender.”

An appraiser helps a lender make better, more informed lending decisions by evaluating the equipment a loan recipient wants to buy and providing the lender with an accurate appraisal. Of the many types of equipment values an appraiser can provide, the ones that are most important in a default situation, and currently the most requested, are the fair market, the forced liquidation, and the orderly liquidation values. With a certified appraisal in hand, the lender can make an educated loan decision based, in part, on these three values. 

Present Value prides itself on its turnkey service, and is happy to act as a resource for its clients as they cope with past mistakes and look toward improving their processes. “Lenders turn to us because we know their business,” said Kinzie. “Our experience and our understanding of their needs allow us to act as consultants. And we help them achieve great results.”

Read the full text of this press release here.

By: Present Value

Tags: lenders, loan default, Press release
Posted in Press release | 2 Comments »

Case Study: Pre-Loan Asset Verification

Asset verification is a significant part of Present Value’s services. We’ve written about it in the past here and here. Today, we’ll highlight a real-world example that demonstrates the importance of asset verification for responsible due diligence.

Present Value had a client who owned a strip mall that included a movie theater. The movie theater began to lose business, the theater owner could no longer pay rent to the property owner, left the strip mall, and defaulted on his equipment loan. According to the terms of the lease, the property owner could take over everything in the property in 45 days.

Present Value was asked to appraise the equipment in the movie theater and came up with a value one-fifth the value of the loan. The reason for the huge discrepancy was that when the movie theater operator took out his equipment loan, he misrepresented the value and type of movie equipment he owned and planned to purchase. As a result, when the theater owner defaulted on the loan, the lender lost quite a bit of money.

This problem could have been prevented if the lender had requested an asset verification prior to approving the loan. If this had been done, the lender would have had assurance that the equipment it was supporting was equal to the value of its loan.

By: Present Value

Tags: Asset Verification, due diligence, lenders
Posted in Asset Inspection, Machinery & Equipment Appraisal | No Comments »