M&E Appraisal Associates, Inc. (“M&EAA”) provides certified lighting components inventory appraisals. M&EAA recently appraised the inventory of a large volume lighting components manufacturer and distributor.

The subject inventory appraised included raw materials (coil steel, cord, wire, etc.), work in progress (WIP), and purchased parts, components, and finished goods.

Appraisal conclusions: the finished goods and purchased parts/components were typically well matched to customer demand, and yielded high orderly liquidation recovery value. Concluded values for these more desirable/higher margin inventory categories typically ranged from 75% to 90% of normal selling price. Slow moving, and/or obsolete inventory items typically had low orderly values ranging from 10% to 20% of cost. The blended average aggregate Orderly Liquidation Value was approximately 50% of the subject company’s inventory book cost.