Rouse Asset Services

APPRAISAL TYPES ~~VALUE TYPES~~

FAIR MARKET VALUE (FMV)
FMV Definition – “A professional opinion of the estimated most probable price expressed in terms of money to be realized for property in an exchange between a willing buyer and a willing seller, with equity to both, neither being under any compulsion to buy or sell, and both parties fully aware of all relevant facts as of the effective date of this appraisal report. Additionally, this value is not discounted for assembling, cleaning, security, advertising, brokerage, or other disposal costs, if any.”
The Rouse Difference - Each month Rouse is provided with hundreds of millions of dollars of retail (i.e. direct to “end-users”) sales data, totaling over $2 billion annually from its rental company & equipment dealer clients. Rouse is the only appraisal firm in this industry that has access to this data and has the ability to relate this sales data to current equipment fleets in order to accurately determine Fair Market Value(FMV).
ORDERLY LIQUIDATION VALUE (OLV)
OLV Definition – “The estimated gross amount expressed in terms of money that the Equipment will typically realize at a privately negotiated sale, properly advertised and professionally managed by an experienced seller of property of the kind and type being sold which liquidation sale is to take place over a 6 to 9 month period. All Equipment to be sold piecemeal, “as is where is” with the purchaser being responsible for removal of the assets at purchaser’s own risk and expense.”
The Rouse Difference – Most appraisal companies that appraise rental equipment or construction dealer fleets are forced to rely on the limited universe of auction sale data as a basis to estimate what the Orderly Liquidation Value of a unit would be. Rouse uses billions of dollars of proprietary retail (i.e. direct to “end-users”) sales data from its rental company & equipment dealer clients to determine an accurate OLV by analyzing the difference between actual FMV (retail) and FLV (auction) values.
FORCED LIQUIDATION VALUE (FLV)
FLV Definition – “The estimated gross amount expressed in terms of money that the Equipment will typically realize at a properly conducted public auction when the seller is compelled to sell as of a specific date within a 60 to 90 day period. All Equipment to be sold piecemeal, “as is where is” with the purchaser being responsible for removal of the assets at purchaser’s own risk and expense.”
The Rouse Difference – In addition to receiving all auction sale data directly from the largest rental companies in the industry, Rouse field appraisers physically monitor every major auction of rental and construction equipment in North America and our appraisers record the results of virtually every auction that is conducted for this type of equipment. This data is then imported into the Rouse Appraisal Book and meticulously analyzed by our in-house appraisal analysts to arrive at the most accurate and up to date Forced Liquidation (FLV or Auction) Values available.
NET LIQUIDATION VALUE (NLV)
In a typical asset based loan (“ABL”) transaction for a major rental company, the lender requires an analysis of the anticipated liquidation expenses to arrive at a Net Orderly Liquidation Value. Rouse’s Net Liquidation Value (NLV) report provides a detailed analysis of the net liquidation scenario and relies upon a detailed review of 12 month operating results (EBITDA) for each rental location relative to the OLV of each location’s equipment. The report provides for an estimate of the gross recovery, net recovery and the costs associated with a liquidation of a major rental fleet. Typically, lenders require that an NLV analysis be prepared upon the initiation of an ABL facility for a major rental company and upon any material change in the company’s business environment (i.e. the economy) or in the business itself (e.g fleet size, locations, revenue, operating expenses, etc).

FAIR MARKET VALUE (FMV)
FMV Definition – “A professional opinion of the estimated most probable price expressed in terms of money to be realized for property in an exchange between a willing buyer and a willing seller, with equity to both, neither being under any compulsion to buy or sell, and both parties fully aware of all relevant facts as of the effective date of this appraisal report. Additionally, this value is not discounted for assembling, cleaning, security, advertising, brokerage, or other disposal costs, if any.”

The Rouse Difference - Each month Rouse is provided with hundreds of millions of dollars of retail (i.e. direct to “end-users”) sales data, totaling over $2 billion annually from its rental company & equipment dealer clients. Rouse is the only appraisal firm in this industry that has access to this data and has the ability to relate this sales data to current equipment fleets in order to accurately determine Fair Market Value(FMV).

ORDERLY LIQUIDATION VALUE (OLV)
OLV Definition – “The estimated gross amount expressed in terms of money that the Equipment will typically realize at a privately negotiated sale, properly advertised and professionally managed by an experienced seller of property of the kind and type being sold which liquidation sale is to take place over a 6 to 9 month period. All Equipment to be sold piecemeal, “as is where is” with the purchaser being responsible for removal of the assets at purchaser’s own risk and expense.”

The Rouse Difference – Most appraisal companies that appraise rental equipment or construction dealer fleets are forced to rely on the limited universe of auction sale data as a basis to estimate what the Orderly Liquidation Value of a unit would be. Rouse uses billions of dollars of proprietary retail (i.e. direct to “end-users”) sales data from its rental company & equipment dealer clients to determine an accurate OLV by analyzing the difference between actual FMV (retail) and FLV (auction) values.

FORCED LIQUIDATION VALUE (FLV)
FLV Definition – “The estimated gross amount expressed in terms of money that the Equipment will typically realize at a properly conducted public auction when the seller is compelled to sell as of a specific date within a 60 to 90 day period. All Equipment to be sold piecemeal, “as is where is” with the purchaser being responsible for removal of the assets at purchaser’s own risk and expense.”

The Rouse Difference – In addition to receiving all auction sale data directly from the largest rental companies in the industry, Rouse field appraisers physically monitor every major auction of rental and construction equipment in North America and our appraisers record the results of virtually every auction that is conducted for this type of equipment. This data is then imported into the Rouse Appraisal Book and meticulously analyzed by our in-house appraisal analysts to arrive at the most accurate and up to date Forced Liquidation (FLV or Auction) Values available.

NET LIQUIDATION VALUE (NLV)
In a typical asset based loan (“ABL”) transaction for a major rental company, the lender requires an analysis of the anticipated liquidation expenses to arrive at a Net Orderly Liquidation Value. Rouse’s Net Liquidation Value (NLV) report provides a detailed analysis of the net liquidation scenario and relies upon a detailed review of 12 month operating results (EBITDA) for each rental location relative to the OLV of each location’s equipment. The report provides for an estimate of the gross recovery, net recovery and the costs associated with a liquidation of a major rental fleet. Typically, lenders require that an NLV analysis be prepared upon the initiation of an ABL facility for a major rental company and upon any material change in the company’s business environment (i.e. the economy) or in the business itself (e.g fleet size, locations, revenue, operating expenses, etc).


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