Industry Insights from Todd Taylor, Expert Equipment Certified Appraiser (EECA)

Top 3 Industries as of June 7th 2022:

• Transportation / Delivery (including FedEx Routes)
• Large, Earth Moving equipment
• Breweries

I see a recent trend, where banks want to reduce the percentage of Goodwill allocated toward a purchase price, as most sellers have accelerated depreciation and book value is virtually non-existent.  We are being asked to provide Orderly Liquidation Value (OLV) for the existing FFE, to help reduce the amount of allocated Goodwill.

We have also seen quite a few Breweries in the last six months. The trend seems to be many breweries have not recovered well, since the restricted period associated with COVID-19 (especially breweries that offered indoor dining). We have seen requests for FFE values, so banks know their exposure.  We have also seen an increase in the number of partner buyouts for breweries, where the value of the business would be the value of the assets.