Equity Bid Appraisal

Last Updated: Jun 7, 2019

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Well after the completion of the appraisal itself, appraisers will continue to monitor the company and collateral. Importantly, appraisers will often conduct retail appraisals on an equity bid basis, reflecting their willingness to provide an immediate cash guarantee on the value of the consumer goods they appraise. The result is the more definitive, accurate appraisal in the marketplace.

An equity bid appraisal can also be provided against other forms of collateral including machinery & equipment, real estate, and inventory, and as with retail collateral, it provides the amount the appraisal firm would be willing to pay for the collateral (at the time of the appraisal) if it were given the opportunity to purchase it.

While equity bid appraisal valuations can be very helpful, changes in the underlying collateral, or market conditions, can make reliance on the potential purchase price problematic after a short period of time.