Orderly Liquidation

The opinion of Orderly Liquidation value for inventory expressed in the appraisal, is that percentage of the lesser, cost or market, which should be attainable through an orderly liquidation of the defined inventory within a specified time frame.  This value can only be obtained on an inventory that is whole and complete and which has not been picked over or cannibalized.  This opinion assumes the orderly liquidation will be administered by a person, company, or department that is experienced and adept with such functions, and that the majority of the inventory will be disposed of, most often with the cooperation and active participation of the company’s owners and management, through an “arms length” transaction whereby the inventory is sold, in part or in whole, to present customers, suppliers, competitors, liquidators, or other potential users in a commercially viable manner.

 

This value represents the Net Amount from which holding and selling costs, commissions, rent, cost of funds, and other miscellaneous costs, has been netted.  No value has been assigned to related assets, both tangible and intangible, which might have a value in the orderly liquidation process.

 

Build Out/Wind Downs

Followed by this explanation: on certain occasions with business and/or manufacturing closures, there remains large amounts or quantities of raw materials or work in process. JCM has the resources and experience to analyze the cost effectiveness of completely any production in order to use up the raw materials on hand. We can also procure additional materials to further enhance the value of the assets. Further, we can help negotiate early lease terminations, related matters and effectively “wind-down” the entire operation from beginning to end.

Distressed Liquidation

The opinion of Distressed Liquidation value for inventory expressed in the appraisal, is that percentage of the lesser, cost or market, which should be attainable through a distressed and poorly organized sale of the defined inventory within a specified time frame.  This value is diminished because the company’s owners and managers are not involved in the liquidation process, and the inventory is not whole and complete because it has been picked over or cannibalized.

 

This opinion assumes the liquidation will not be administered by a person, company, or department that is experienced and adept with such functions, and that the majority of the inventory will be sold, in large part or in whole, to liquidators, scrappers, or others offering quick cash for deep discounts.

 

These values represent Net Amounts from which holding and selling costs, commissions, rent, cost of funds, and other miscellaneous costs, have been netted.  No value has been assigned to related assets, both tangible and intangible, which might have a value as a going concern.

 

Forced Liquidation

The opinion of Forced Liquidation value for inventory expressed in the appraisal, is that percentage of the lesser, cost or market, which should be attainable through a distressed and poorly organized sale of the defined inventory within a specified time frame.  This value is diminished because the company’s owners and managers are not involved in the liquidation process, and the inventory is not whole and complete because it has been picked over or cannibalized.

 

This opinion assumes the liquidation will not be administered by a person, company, or department that is experienced and adept with such functions, and that the majority of the inventory will be sold, in large part or in whole, to liquidators, scrappers, or others offering quick cash for deep discounts.

 

These values represent Net Amounts from which holding and selling costs, commissions, rent, cost of funds, and other miscellaneous costs, have been netted.  No value has been assigned to related assets, both tangible and intangible, which might have a value as a going concern.

 

Fair Market

The opinion of Fair Market- in place value for the appraisal expressed in the appraisal, is that the price for the company’s inventory which should be attainable through an arms length sale of the inventory and assets within a specified time frame.  This value can only be obtained on inventory that is fresh, saleable and which has recently been generating income.   This opinion assumes the sale  will be with the cooperation and active participation of the company's owners and management, through an "arms length" transaction whereby the assets are sold substantially to one: competitor, investment group, or other potential user or reseller of the inventory.

 

These values presented herein represent the Net Amount from which holding and selling costs, commissions, rent, cost of funds, and other miscellaneous costs, have been netted.  No value has been assigned to related assets, both tangible and intangible, which might have a value in the orderly liquidation process.

 

Auction Value

A professional opinion of the estimated most probable net amount expressed in terms of currency which could typically be realized at a properly advertised and conducted public auction sale of used personal property, held by a qualified auction services firm under forced sale conditions and under present day economic trends. The Net Auction Value includes direct auction expenses, but does not include attorney fees, rent, building repairs, maintenance, etc. that are not under the liquidator’s control.  Conclusions taken into consideration are physical location, difficulty of removal, physical condition, adaptability, specialization, marketability, overall appearance and psychological appeal.  Further, the ability of the asset group to draw sufficient prospective buyers to insure competitive offers is considered.

 

All assets are to be sold on a piecemeal basis “as is” with purchasers responsible for removal of assets at their own risk and expense.  An auction sale would be conducted within 60 days from point of contract and/or court approval. Although JCM Liquidations do not provide auction services, when it makes sense to do so, JCM liquidators will corral “lots” of inventory which are then offered to a participating qualified Auction firm at the conclusion of the liquidation and included in the “auction sale” of any fixed assets on site.