Spotlight: Kristi Faherty, Managing Director

Kristi's journey started at GA as a Financial Analyst right out of college. She quickly discovered a passion for a field that blends meticulous financial analysis with real-world, hands-on interaction. "I was drawn to the unique blend of financial analysis, hands-on client and company interaction, and the opportunity to work with a multitude of companies across diverse industries," she explains. This early fascination led her to specialize in industrial and wholesale inventory appraisals, where her team has become a leader in the Food and Wine & Spirits verticals.

Her work, at its core, is about valuing inventory for the purpose of asset-based lending (ABL). This involves a deep dive into a company's assets to help lenders determine how much they can safely lend.

One of the most common misconceptions about inventory valuation is that it's a simple, one-size-fits-all process. Kristi emphasizes that this couldn't be further from the truth. The net orderly liquidation value (NOLV) of inventory, even within the same industry, can vary dramatically based on factors like inventory costing, customer channels, sales volume, gross margins, and broader market trends.

To get the most accurate picture, Kristi and her team rely on detailed SKU analyses. This methodology allows them to examine inventory at the individual product level to identify excess or obsolete stock. This is crucial for determining how much inventory can be sold through the current customer base and how much would need to be sold through alternative channels in an OLV.

"We perform a deep dive at the SKU level to evaluate excess inventory and assist clients in determining the value of the inventory," she says. This level of detail ensures that their appraisals provide a reliable and realistic value, even in a "worse-case liquidation scenario."

In a world of constant economic shifts, the appraisal industry must remain agile. Kristi notes that keeping up with trends like tariffs, supply chain disruptions, and the effect of macroeconomic uncertainty is not just a good practice—it's essential.

"Our work requires us to keep up with industry trends and closely monitor potential impacts to value," she says. This allows her company to proactively assist clients in navigating uncertain times.

A great example of this is GA Group's Food Monitor and Infographic that Kristi leads. This insights project provides lenders with up-to-the-minute information on industry trends, helping them stay ahead of potential impacts on the inventory appraisal values of their food-related deals.

What's next for Kristi and her team? The focus is on continued growth and expansion of services. The addition of Field Examinations was a major step forward, allowing the company to offer a more comprehensive suite of solutions - inventory appraisals, machinery and equipment appraisals, real estate appraisals, intangible asset appraisals, and now, field exams.

The benefits of hiring the appraisal and field exam team within the same firm are proven for both the lender and subject company. Both can expect a singular point of contact for simplified communications and efficiency in the process. The company can also enjoy a combined effort in requests, interviews, field visits and test counts without the duplication of these time-consuming tasks.

Beyond the numbers and spreadsheets, Kristi intends to continue finding balance through travel and spending time with her twin daughters, often cheering them on at soccer and basketball games. These personal passions have helped her stay grounded and bring a well-rounded perspective to her work.