Our Experience
- + $450 Million Appraisal Value - Mid-America has performed nearly 100 appraisals with a collective value of more than $450 million. The appraisals include 80 quarries, sand & gravel pits, coal mines and undeveloped mineral properties. In addition the firm has valued asphalt and ready-mix operations, contractors, and drilling & blasting companies.
- The appraised mineral properties are located in 20 states (refer to map).
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" sales price.
- Used by purchasers to determine if they qre 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 and Market Approach. Our appraisals require and include a thorough assessment in order to prepare 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.
The typical scope of work includes a site visit to assess first hand the physical nature of the mineral and any capital improvements as well as the local competitive market. We review historical financial performance, mineral leases, supply contracts, operating permits and market intelligence.
Typical scope of work includes the following:
I. Business Assessment
- Site Visit. Site visit to inspect the quarry (including reserve characteristics, operations, processing plants, mobile equipment fleets and environmental compliance).
- Review and analyze quarry's historical operating and financial performance for the past three years.
- Meet with management to review management's business plan for the quarry.
- Review mineral property's drill hole data, geotechnical and reserve information.
- Review mineral property's property control, zoning, mining permits and reclamation plans.
- Market Recognizance. During the site visit, evaluate the local market and the quarry's competitive position.
- Investigate and analyze publicly available competitor information and market and sales data.
II. Financial Modeling & Value Determination
- 25-Year Sales Forecast: Based on our review of the above information and site visit, prepare a 25-year sales forecast (volume and prices).
- 25-Year Pro Forma Financials: Based on our review of the above information and site visit, prepare 25-year pro forma financial statements.
- Fair Market Value Estimate: Determine the Business' fair market value using the Income Approach (discounted cash flow analysis), Asset Based Approach and the Market Approach.
III. Fair Market Value Estimate & Written Report
- Fair Market Value Conclusion.
- Written Report. Provide a written report that includes sufficient documentation to support our findings. The written report will contain the following sections: Executive Summary, Company Description, Marketing Analysis, Financial Analysis, Business Plan, and Estimate of Value.
Clients
Mid-America's clients include mining companies, business owners, law firms, banks and other financial institutions.
