Consumer Packaged Goods
November 21, 2012
EquipNet’s client, a major global food and beverage manufacturer, purchased a company that manufactures drink concentrates. Along with the manufacturing and distribution processes came over 30,000 beverage dispensers located at sites throughout the United States. As a part of the purchase, the client needed the assets, including the dispensers, verified and valued using a process that would meet the International Accounting Standards. In addition, the results of the dispenser verification would directly affect the purchase price paid by the client.
The client contacted EquipNet to perform the valuation and verification process. Additionally, we worked with the client, representatives of the company they purchased, and their auditor to develop a sampling plan that encompassed a direct mail process and a follow-up process that included both phone calls and visual verification of the sample of the dispensers. This sampling process took a number of months.
The valuation of all the assets (including the dispenser assets) passed the audit review process with minimal effort on the part of the client and EquipNet. The sampling process identified that approximately 11% of the dispensers were not in existence. The results of the sampling, coupled with other data, resulted in a reduction of the purchase price paid for the company. In addition, throughout the sampling process, we identified areas where the company could improve their inventory and tracking systems to avoid potential issues in the future.
EquipNet offers inventory appraisal and asset verification services nationwide to help our clients meet federal government requirements and the ever-changing regulations in their industries. If your organization is in need of asset verification and valuation services, please contact EquipNet.
Categorias: Consumer Packaged Goods
Tags: appraisals valuation,
