Introduction to Valuation.
The “Introduction to Valuation” seminar offers an in-depth look at the processes involved in determining inventory value. By the end of this seminar you should be able to understand the inventory valuation process and how it can be employed to effectively evaluate inventories across a wide range of industries. Through a very interactive process with real-world applications, this presentation covers the principles, jargon, value definitions and methodologies used to create accurate appraisals.
Introduction to Inventory Appraisals.
The “Introduction to Inventory Appraisals” seminar provides an overview of important valuation definitions, principles and techniques. By the end of this seminar you should be able to effectively communicate your needs to appraisers and more accurately interpret an appraisal report. In addition to focusing on skills for drafting a letter of engagement, the seminar provides insight into important factors considered when pledging/securing assets like inventory as collateral in an asset-based loan.
Classic Signs of Loan Fraud.
The “Classic Signs of Loan Fraud” seminar provides classic signs of potential frauds in collateralized loans. Discussion points include: symptoms of potentially fraudulent borrowers; a checklist of important “need to knows” relating to potential fraud hidden in the inventory; “Red Flags” relating to fraud or losses hidden in the inventory; common schemes for embezzlement; common loan fraud schemes; and what to look for as far as typical internal control problems relating to inventory.
Psychology of the Borrower in Special Assets.
The “Psychology and Emotional State of a borrower who is assigned to special assets” seminar discusses real life hands on experience from Jay, Cobb & Marley Senior Appraisers. Discussion points focus is on the fact that almost all borrowers fall into two broad categories: Large and/or medium sized corporations managed by professionals who have little or no equity position in the Company; medium and/or small sized companies who are managed by the founder, primary stockholder or a relative of the founder or primary stockholder. Often the Bank has personal guarantees covering shortfalls in the event of a liquidation or default by the borrower. The seminar will aid the Special Assets attendees on how to recognize each type of Company and the various barriers which must be overcome. These barriers to cooperation may be shared by the management of both types of companies or may be unique to one or the other.
Managing the Site Visit.
The “Managing the Site Visit” seminar addresses what can be gained by visiting the client; we address both the obvious and the not so obvious. Emphasis is on what can be learned about the borrower and his current situation from the time that the visitor (loan officer, appraiser, etc.) turns into the debtor’s driveway to when he exits the premises. Sample topics covered include: specific things to look for while on site; topics that should be covered during the visit; techniques of observation; dealing with the debtor on his home turf; controlling the plant and/or warehouse tour; inventory red flags; potential security issues; potential environmental issues; potential personnel issues; and basic lender’s intuition for “putting it all together”.
Inventory: Beyond the Collateral Value.
The “Inventory: Beyond the Collateral Value” seminar deals with the information that the lender should require from any inventory appraiser and how this information should be used to evaluate and monitor the debtor’s Company on an ongoing basis. Most lenders think of inventory appraisals solely as they relate to collateral value. Included in this seminar is a discussion of how the appraisal can help the lender: decide if the debtor can generate cash with the inventory that he has been or will be selling; whether or not the borrower’s products are marketable; other assets, agreements or circumstances which might materially enhance the worth of the inventory; the ability of the borrower to control and report their inventory; the ability of the lender to monitor and control the inventory; key risk factors affecting the Company’s survival; an assessment of the Company’s present management; and the likelihood that the Company can survive with or without a cash infusion or a change in direction.