Loeb takes a proactive approach to ensuring the assets reported in our valuations are correct and that the list is complete. An integral step in this approach is our Asset Verification Process. Upon completion of the field inspection, Loeb issues an asset verification list back to the facility with two primary questions in mind.

First of all, is the list complete? It’s not necessarily a concern that the appraisers may have “missed” something, but more that the facility didn’t show everything. There could be additional assets at an offsite location, currently being rebuilt or at a co-packers facility, but that should also be included with the report.

Secondly, are all the assets owned outright or are there any leased assets? It’s most common that equipment within a facility belongs solely to a customer, but often times major assets or newly installed lines are leased. Regardless of ownership, we leave the assets within our report, and make sure they are clearly identified as “Property of Others” or “Leased.” While it doesn’t factor into the overall value of the facility, leaving all the assets in the report regardless of ownership, removes any question of whether the assets were inspected and what is the status of each asset is.

As an example, Loeb recently appraised a contract packaging facility in which a complete production line was owned by one of their clients. If that had not been disclosed during this asset verification process, there would be have been an additional $750,000 in value left in the appraisal which would have distorted the overall opinion of value.

With every engagement comes the distinction of whether the appraisal client is in search of a complete report or just a report delivered quickly. Obviously it’s the nature of business today to want to turn around information an expedient manner, but as accredited valuation experts, first and foremost we stake our reputation on providing a complete and accurate report. While it may seem like just an extra step the final hurdle to issuing the final report, the asset verification process is integral to issuing the most accurate and complete appraisal as possible.