Case Study: Manufacturing company assets go from zero to millions

Inside of a manufacturing company
Published on: 14th November 2014

A substantial manufacturing company was owned by a large plc. Their depreciation policy was to write off assets as quickly as possible (including the specialist buildings).

The company is now privately owned and finds itself asset rich but with a net book value of nearly NIL. This is not a practical situation for a private company, as analysts and banks tend to look at their financial figures in a different way. The plant still has a substantial life ahead of it.

As we are specialists in revaluing assets for financial accounting purposes, we were instructed to revalue the plant and machinery with a full detailed schedule of the machinery involved, so that the client could rebuild their balance sheet from virtually zero to millions of pounds.

The introduction of the new UK financial Reporting Standard (FRS102) has led to a large increase in requests from businesses looking to revalue their assets.

Please get in touch to discuss how we can help you without any obligation.

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Asset Valuation

We place great emphasis on technical expertise, professional integrity and client care when operating in the machinery and business assets sector. We were the first firm in our industry to obtain international quality standard ISO9001 for our plant and equipment valuation and sale services.  We operate throughout the United Kingdom, specifically in Leeds, London, Manchester, Newcastle upon Tyne, Teesside and Bristol. We also operate abroad, and have associate offices in Belfast, Dublin, mainland Europe, the US, India and the Far East.   Contact Us

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FRS 102 valuation: review the value of your business assets

UK accounting practices for many businesses changed on January 1, 2015 to the new Financial Reporting Standard (FRS) 102. FRS 102 could present you with the opportunity to use the principle of ‘fair value’, and to revise the value of your property, plant and equipment assets. This allows you to effectively rebuild your asset registers, particularly where machinery has been written down to zero but is still a valuable part of your company’s assets. After transition to the new standard, FRS 102 only requires valuations to be performed with ‘sufficient regularity’ giving further motivation for you to undertake valuations sooner rather than later. Our asset valuation team have already undertaken fair value valuations for a number of companies across the UK, which have delivered a significant uplift in asset values. For more information about how FRS 102 asset valuation can impact on the value of your business assets, please contact our specialist asset valuation advisor. Contact Us

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Asset based lending

Asset Based Lending ("ABL") is becoming an increasingly popular alternative to traditional funding. ABL allows businesses to acquire funding against all asset classes including; • Accounts Receivable• Inventory• Plant & Machinery• Property Here at Sanderson Weatherall, we provide specialist advice and support to Asset Based Lenders across the UK and Ireland; supporting both domestic UK and cross border European transactions. Our advice also extends further to Corporate Finance Advisors, Private Equity Investors and direct to businesses. Collateral valuations and due diligence surveys are an important part of the secured asset based lenders considerations when considering new and reviewing existing portfolio - ABL transactions and are a major requirement of the credit process. These valuations and surveys support the lenders structured deal offering and are vital in the decision making process for secured lending on acquisitions, refinance and MBO/MBI deals. We have a unique team with extensive UK, European and US experience in collateral valuation, due diligence, risk profiling, portfolio management and exit strategy. We offer collateral valuation and due diligence primarily on the following asset classes: • Accounts Receivable• Commodity Inventory• Commercial and Industrial Manufacturing Inventory• Wholesale Inventory• Plant and Machinery• Property With the knowledge and experience here at Sanderson Weatherall, given our national coverage, we have the range of skills to support the needs for collateral reviews, due diligence, valuation for all secured lending requirements; whether new business, managing existing lending portfolios or advising on risk and recovery profiles. Click here to view our recent case studies

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