Valuations & Appraisals

Our Experience

  • Valuations total more than $700 Million – Mid-America has performed nearly 100 appraisals with a collective value of more than $700 million. The appraisals include: quarries, sand and gravel pits, coal mines, and undeveloped mineral properties. The firm has also valued asphalt and ready-mix operations, contractors, and drilling & blasting companies.
  • Mid-America Retained As Valuation Instructor – In recognition of our significant valuation experience, Mid-America was retained by Business Valuations Resources LLC to present a webinar course for continuing education credits titled “Valuing Quarries & Mines” (2013).

Scope of Appraisals

Mid-America’s appraisals have been used by our clients for several varied purposes. Typical uses of our appraisals include:

  • Transactions
    • Used by sellers to establish fair market value and a “fair” sale price.
    • Used by purchasers to determine if they are getting a “fair” purchase price.
  • Bank Financing
    • Used by banks and other financial institutions to establish collateral value
  • Tax Appraisals
    • Used to establish value for 1031 property exchanges and estate purposes.
  • Litigation & Arbitration
    • Used to establish value for divorce settlements and lease disputes.

Our Approach

Mid-America comprehensively values the subject property, or operating business, using the three accepted valuation techniques:

  • Income Approach
  • Asset-Based Approach
  • Market Approach

Our appraisals include a thorough assessment to enable the development of the long-term pro forma financial statements necessitated by the Income Approach.  We employ the methodology set forth by the Uniform Standards of Professional Appraisal Practice.

Typical scope of work includes the following:

  1. Business Assessment      
    • Site Visit. Visit site to inspect the quarry or mine and attend management meetings.
    • Analyze historical operating and financial performance.
    • Review management’s business plan.
    • Review geotechnical and reserve information.
    • Review property control, zoning, mining permits and reclamation plans.
    • Market Recognizance.  Evaluate the local market and the quarry’s competitive position.
    • Analyze publicly available competitor information and market data.
  1. Financial Modeling & Value Determination
    • 25-Year Sales Forecast: Prepare a 25-year sales forecast (volume and prices).
    • 25-Year Pro Forma Financials: Prepare 25-year pro forma financial statements.
    • Fair Market Value Estimate: Using the Income Approach (discounted cash flow analysis), Asset-Based Approach and the Market Approach.
  1. Fair Market Value Conclusion & Written Report
    • Written Report: Containing the following sections: Executive Summary, Company Description, Marketing Analysis, Financial Analysis, Business Plan, and Estimate of Value.