Orderly Liquidated Value in Place
Appraisal Terms and Definitions
Orderly Liquidated Value in Place is the professional opinion of the estimated gross amount of assets in place expressed in terms of currency that a knowledgeable buyer would be willing to pay a knowledgeable seller for the assets in place, taking advantage of all leasehold and site improvements designed to facilitate their operation.
Both the buyer and seller acknowledging the assets must be sold and are being purchased 'as is, where is', (without any kind of modification) with the intent of continuing the operation of the assets in the manner for which they were intended. The purchaser acknowledges that the "as is" and the "where is" conditions provide that there are no warranties on the assets. The seller professionally advertises and manages the sale. Any type of an alterations to the assets would change the psychological and/or monetary appeal, which would then change the ability to generate the value(s) previously estimated.
An Orderly Liquidated Value in Place assumes the company can afford to sell its assets in a predetermined time period (often three to six months) through private negotiation and it does not take into consideration past, present, or future income generating performance of the assets. The buyer and the seller acknowledge the sale of the assets is under duress and there is a compulsion to sell the assets.
However, the In Place appraisals often take into consideration the value of personal property as individual assets with additional consideration given to the estimated contributory value of depreciated installation costs, site improvements and transportation costs. In Place appraisals do not allow for historical or future earnings potential because the In Place appraisal is an estimate of limited scope.
Maynards has worked in many cities and towns, and they have skillfully handled large-scale projects; we can take care of your auction and appraisal needs.