Arbitrage assessed the reserve price of a large shipyard for presale purposes. Our advisory team also provided business valuation and long lease pricing services.
The valuation exercise was in conjunction with another reputable Corporate Finance advisor. The purpose of the assignment was to support the seller, a public entity, in the process of a competitive sale process.
During the assignment, our team provide the following set of appraisal services:
- Assessed the current status of the shipyard from a maintenance and repairs perspective
- Determined the market value of the land component, depreciated M/E equipment and infrastructure in place (As Is pricing)
- Based on industry benchmarks and the property asset’s capacity, determined the optimum business plan for the shipyard facilities
- Determined the Investment Value and the Long Lease Rent of the Asset
For the purposes of our appraisal work, two scenarios were assessed in relation to the existing MEP equipment and infrastructure.
- A complete replacement of all the installations currently in place
- A partial replacement of all aged installations with the repair of any equipment or infrastructure with remaining residual value.
