Inventory Validation
All inventory valuations are not the same.
Sector3 understands that raw materials, metals, chemicals, plastics and commodity valuations cannot be approached like traditional retail, distribution or manufacturing appraisals that may rely on prior performance to predict future results. Our familiarity with manufacturing, distribution, sales, and the metal and chemicals markets allow us to provide insight and accuracy that other appraisal companies cannot.
With unsurpassed experience in metals and chemicals production and a thorough knowledge of the macro and microeconomic factors that impact pricing, Sector3's appraisers are able to provide a valuation that is relevant, accurate and useful.
The Sector3 Process
Sector3 is
committed to continual refinement of its valuation methods and is never
stagnant in its approach. Sector3’s appraisal process includes:
Analysis of a company’s financial and inventory data
Sector3's dedication to the raw materials, chemicals and plastics and metal markets allows our analytical team to provide unparalleled quantitative and qualitative analysis of a company's financial performance and inventory movements. This insight leads to more accurate liquidation modeling.
Physical on-site inspection of assets
Our experienced appraisers visit company operations to observe the production process, inventory tracking and storage, and distribution. Additionally, each appraisal report offers our appraiser’s observations of strengths and weaknesses within the organization.
Operation and management interviews
Sector3 holds discussions with management to review the company’s position in the industry, the strength of its competitors, and strategies for the future.
Insightful and in-depth market and industry discussions
Sector3 examines the specific market conditions for a company's inventory, evaluating price on global and U.S. trading markets, illustrating fluctuations, and highlighting influences that affect costs and sales conditions. This includes the special handling considerations for many chemical products.
A final report that conforms to the Uniform Standards of Professional Appraisal Practice (USPAP)
The final report outlines values, provides supporting discussion, and offers disposal advice. Sector3 provides the lender with a list of factors influencing a company's inventory value, including current costing practices and the company’s ability to react to market pricing volatility.