AVITAS Inventory Appraisal Services
In addition to the Aircraft valuations, BlueBook publications, and online valuation services, AVITAS also provides valuations of aviation inventory.
AVITAS routinely reviews the inventory of airlines, part-out facilities and aircraft parts brokers. The valuation consists of a detailed review of the list of parts provided by the client via an Excel spreadsheet. By comparing the inventory data against the AVITAS database, AVITAS can determine the Fair Market Value and marketability of the inventory of parts. The AVITAS database is a compilation of numerous sources that includes manufacture’s catalog pricing, brokerage pricing, and transactional data provided by our clients. Using this database and the experience of our valuation team, AVITAS is able to provide a value of inventories of any size. As an example, AVITAS recently completed an inventory valuation of a collection of 12 million aircraft parts consisting of over 120,000 part numbers.
AVITAS is also able to provide an orderly liquidation of asset value and forecast cash flows. Our proprietary model uses the marketability of each part and predicts the likelihood of sales over a 10 year period. Based on the inventory and its relevance to the current market, we can forecast how the inventory will sell over time. In addition, using a discount rate of your choosing, this will also provide a Net Present Value for the inventory.
In addition to the valuation process, AVITAS offers an operational review of the inventory facility. This operational review includes an inspection of the inventory facility, and an operational review of policies, processes, procedures, staff, and management. AVITAS would travel to the facility location and spend an entire day at the facility. During this visit, AVITAS will inspect the facility, review the operation, meet the management, and spot check the inventory.
If you wish engage AVITAS to provide an appraised market value of the inventory, please let me know. For AVITAS to prepare a proposal, we would request the inventory list in an Excel spreadsheet. Using this spreadsheet we would review the inventory listing to ensure there is adequate detail to describe the parts, and ensure the parts are covered within the AVITAS database. For Life Limited Parts, we would also request the history and status of these parts.
As AVITAS is a market leader in aircraft valuations, our team of appraisers is very much aware of aircraft values, transactional information, and trends in the marketplace with regard to all aircraft types. Using this data, AVITAS is able to estimate future market trends for parts as well. In addition, by adding interchangeability and cross compatibility of individual parts, we are able to determine if parts from an aircraft reaching the end of its life are compatible with any other aircraft types in operation.
For LLPs, we would also need the life limit and the cycles remaining. If more data for the parts is available, please do not hesitate to provide this information.
At AVITAS, the valuation process for an inventory of parts is different from the process for aircraft, engines, or simulators. Although a current market or mark to market value could be determined for each and every part in an inventory of parts, the AVITAS process opines on the aggregate value of the entire inventory as a whole, not on an asset-by-asset basis. The deliverable from an inventory valuation is an appraisers view or Opinion Letter describing the value of the collection of parts as a single number, not a value for each part.
Please let me know, Bruce Burnett, if you have any questions or would like AVITAS to prepare a formal proposal for a valuation.