The Future of Field Exam & Appraisal Services and Benefits of a One-Stop Solution for Asset Diligence
The Challenge: A Legacy Client in Transition
GA Group was approached by an institutional banking client seeking a solution for a long-standing corporate and investment banking customer. The conversation began with a familiar question: "What do you think this inventory is worth?" However, it quickly evolved into a comprehensive, streamlined global field exam and asset appraisal engagement.
The Company Profile
A large global manufacturer, marketer, and distributor of consumer and commercial products, this company generates over $6 billion in annual revenue and maintains a $1.5 billion unsecured credit facility. With upcoming debt maturity and a shifting financial landscape, the company sought clarity on asset valuation from a banking perspective but was not familiar with the asset diligence process.
The Problem – Or Opportunity
Financial performance had softened in recent years, prompting Moody's and S&P to consider downgrading the company's debt rating. With the unsecured credit facility's maturity approaching, the company faced a critical decision: transition to an asset-based lending (ABL) structure or maintain its corporate banking relationships. The challenge? Educating a non-ABL borrower on how to leverage its diverse asset base while keeping its traditional bank group comfortable with the collateral valuation.
While the bank group recognized the company's strong balance sheet, they required an in-depth understanding of collateral values from multiple perspectives: orderly liquidation, fair market value, and full field examination—all while preserving the unsecured facility.
The Solution: A Comprehensive, Integrated Approach
The company needed a single firm capable of conducting a field exam and delivering a global asset valuation (inventory, machinery & equipment, intellectual property) - expertise we are uniquely positioned to provide.
As is the GA Way, we delivered a bespoke solution tailored to our client's unique needs:
Educating the Client: We guided the non-ABL borrower through the field exam and appraisal process, ensuring minimal operational disruption.
Providing a Tailored, Trusted Solution: Leveraging over 30 years of experience, we offered preliminary valuation ranges based on limited public data before kicking off the formal engagement. This allowed the company and bank group to move forward with confidence.
Streamlining Client and Company Touchpoints: While there were four distinct operational teams behind the scenes, both the lender and Company had one main point of contact for all interaction and updates. Additionally, there was a single information request list, one data room, and consolidated site visits, easing the burden on the borrower.
Ultimately, both parties agreed: partnering with GA, an experienced, fully coordinated firm was the optimal solution to maximize asset values, identify collateral risk, and streamline the process.
Scope of Work
Field Exam
Analyzed 17 entities across four jurisdictions (U.S., Canada, UK, and Australia).
Evaluated gross accounts receivable and inventory exceeding $1.4 billion.
Coordinated inventory test counts and visits with our appraisal teams for an efficient, streamlined process.
Inventory
Appraised over $850 million in inventory assets across three divisions in the U.S., Canada, UK, and Australia.
Machinery & Equipment (M&E)
Valued over $150 million in M&E assets across 18 facilities, spanning diverse industries, including plastics processing, metalworking, woodworking, and custom assembly cells.
Intellectual Property
- Provided fair market and
net orderly liquidation values for 30 brands.
- Collaborated with company
management to forecast brand performance, considering corporate
allocations, industry trends, and historical data.
- Delivered industry expertise and bench-marking analysis to support valuation assumptions.
Key Takeaways: A Blueprint for the Future
1. The Future is Now
A customized valuation approach tailored to any bank group, supported by frequent internal coordination.
Each engagement features a dedicated, single main point of contact to streamline communication.
Unified process: One information request list, one kickoff call, and weekly lender updates through a single point of contact.
2. Speed and Efficiency
Streamlined execution facilitated by internal organization and collaboration.
Maximized use of internal resources to minimize business disruption.
3. Transparent Pricing
Pricing based on a fixed range rather than hourly rates, ensuring cost certainty.
Pre-screened deal complexity determines pricing, eliminating surprises for the client.
Conclusion
By combining field exam and valuation services into a single, cohesive solution, GA Group delivers unmatched efficiency, transparency, and expertise—helping clients and lenders navigate asset diligence with confidence.
Team Leadership
Thomas Scotti
Managing Director
Lawrence Jasper
Managing Director
Bill Soncini
National Sales Manager, Midwest Region
Jennie Kim
Managing Director, West Region
