M&E Appraisal Associates, Inc. (“M&EAA”) is expert in the provision of nursery inventory appraisals.

M&EAA recently appraised the inventory of a large regional nursery. The subject inventory appraised included live plants (perennials, decorative shrubs & trees), landscaping supplies, pots & trays, mulch, stone, and other assorted items.

The appraisal was provided for asset based loan consideration purposes, under the Orderly Liquidation Value scenario. M&EAA defines Orderly Liquidation Value as a professional opinion of the gross sales that the inventory would typically realize in a negotiated sale, properly advertised and professionally managed, by a seller obligated to sell over a defined time period.

Appraisal conclusions: the subject inventory is highly affected by seasonal factors and is inherently susceptible to a significant degree of shrinkage. The values concluded were lower than would be expected if the subject inventory was contemplated for sale during the company’s peak sales season. The inventory was concluded on a gross basis. A typical orderly sale would include selling expenses, occupancy costs, retained labor, etc., all of which would be absorbed by the seller and result in a lower net Orderly Liquidation Value conclusion.