Appraisal Services

Appraisal Review

The Appraisal Review is an opinion as to the adequacy and appropriateness of another appraiser's report.  Our report describes the review process undertaken and the conclusions reached along with citations of any violations of professional standards found.  The scope of the work is determined by the reviewer in consultation with the client.  This is used for lending, audit, and litigation support. 

Current and Past Fair Market Values

The most-used of HeliValue$' appraisal types, the "desktop" Fair Market Value (FMV) provides the fastest, simplest, and least expensive valuation for a single helicopter or an entire fleet. Current FMVs are a requirement for nearly every helicopter funding arrangement in the world. Past FMVs are useful in litigation and tax cases. Each year we provide valuations for over seventeen hundred helicopters, so our hands-on market knowledge is unsurpassed.

Orderly Liquidation Values

Often considered the lender's or Lessor's "worst case scenario," this value is for an orderly-but-compelled sale.  It is usually used for a bank's planning purposes in the event of a loan default or early lease termination.  The OLV accommodates a discount to reduce idle inventory time, to account for the compulsion to sell, and optionally to remove the helicopter to another location.

Betterment/Detriment Studies

Used at lease termination, this study compares the beginning vs. ending, or contract vs. actual, component status of a leased helicopter. A betterment/detriment study provides the value delta between the two states to determine which party owes the other at the end of the lease period, and how much.

Residual Projections

Projecting the next ten years' values as a percentage of current Fair Market Value, Residual Projections (RP) are typically used at lease inception to help the lessor determine lease termination values and early buyout option values to check against the amortization schedule, to help determine "bargain" values in accordance with IRS rules, and to look for time frames where the asset value might fall below the amortized value of the aircraft.

Onsite Asset Verification

In the current regulatory environment, a lender has stringent due diligence requirements to meet. HeliValue$ performs the necessary check on the equipment to determine its Fair Market Value and to assure the lender that the helicopter is as represented.

Contract Compliance Checks

HeliValue$' clients may request checks specifically geared to their finance, operating, maintenance, and/or lease return conditions. These specialty checks are often required to precisely fulfill the contract requirements.

Term of Loan and Lease Monitoring Programs

Some lenders require a monitoring program during the finance contract. HeliValue$ can provide a wide variety of value checks which are usually calendar-based, depending on the internal requirements of the financial institution and can spot-check values at various points throughout a finance contract's term.

Inventory and Equipment Valuations

Along with our unique knowledge involving the whole helicopter, we do an excellent continuing business evaluating helicopter parts and equipment inventories.  We can visit the warehouse and do a random sampling or simply work directly from the perpetual inventory.  The report is most useful for the inventory revolvers, purchase price allocation, and exit planning.

Consulting

A longtime favorite of international financiers, HeliValue$ has been providing hourly consulting services for such expert groups as Cognolink, Coleman Research Group, Primary Insight, and Experts.com for the past 6 years. Now we are making this service available directly from HeliValue$' headquarters.

Common topics covered are: the current state of the helicopter resale market, recent developments, average transaction prices, inventory levels, sales volumes, number of players within the sector, strategic tips in dealing with various projected exit strategies in helicopter investments, and more.

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Appraisal Services

Desktop Appraisals
1st Valuation US $2,000.00
2nd - 5th Valuation (each) US $1,650.00
6th - 25th Valuation (each) US $720.00
26th - 50th Valuation (each) US $660.00
51st+ Valuation (each) US $620.00
Choose from: Current, Past or Projected Values of the following types: Fair Market Value, Orderly Liquidation Value or another premise that fits your needs.
Appraisal Review
Desktop Review (with value) US $3,650.00
Desktop Review (no value) $2,000.00
For Onsite Asset Examination, rates below apply
Onsite Asset Examination
Daily Rate US $2,250.00
Travel Time (per day) US $500.00
Plus actual travel expenses
End of Lease Betterment/Detriment StudiesPlease Call For A Quote.
Compare an aircraft's return status to its lease return provisions
Rush Fee 25% Surcharge
Valuations in less than 7 business days for a Single Desktop Appraisal, less than 10 business days for a Single Onsite, conditions permitting. Multiple aircraft, contact HeliValue$ for time frame.
Inventory and Equipment Valuations
Report Fee US $2,000.00
Plus each line item US $6.25 (minimum of 300 line items)
Expert Witness Services
Out-of-office litigation support per hour (capped at US $3,300.00 per day) US $660.00
In-office litigation support - per hour US $375.00
Minimum retainer US $2,750.00
Services may include onsite examination of the aircraft, photography, review of related records, depositions, literature searches, research, analysis, consultation time, preparation for deposition and trial testimony, oral or written reports, preparation of exhibits and demonstrative evidence, all travel time (billed portal to portal), deposition and trial testimony, waiting time for deposition and trial testimony, watching or assisting during the testimony of others, and other related tasks requested by client. Any time related to the case or project which is beyond the scope of an initial telephone interview of the consultant may be considered billable time at our published rates. All fees for out-of-office work are billed portal-to-portal.
Consulting (per hour) US $325.00
A longtime favorite of international financiers, HeliValue$ has been providing hourly consulting services for expert groups for the "past five years". Common topics covered are: the current state of the helicopter resale market, recent developments, average transaction prices, inventory levels, sales volumes, number of secondary markets and strategic tips in dealing with various projected exit strategies in helicopter investments.

Important Notes

HeliValue$' Invoices are due upon receipt.

Letter of Engagement is to be signed prior to the start of any job.

Deposit amount and payment terms are stated in the Letter of Engagement.

Enhanced Enterprise and Enterprise subscribers receive a 20% discount on HeliValue$' desktop appraisal fees. This discount is offered for 20 days, after which the non-discounted amount is due. Interest accrues on full, non-discounted amount of unpaid invoice at 2% per month at 30 days from original invoice date. The Enterprise discount does not apply to Rush jobs. Invoice addressee is responsible for payment. If invoices are to be paid or reimbursed by second party, advance arrangements must be made.

A retainer fee of US $2,750.00 is required prior to commencing any litigation support. The retainer represents the minimum fees to be paid for review of a case, and it will be applied to invoices for completed work.   If the retainer is in excess of the final bill, the difference will be refunded to the client. If additional services are required, you will be invoiced accordingly.


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Fair Market Value (FMV) is defined as an opinion expressed in terms of money, at which the property would change hands between a willing buyer and a willing seller, neither being under any obligation to buy or to sell and both having reasonable knowledge of relevant facts, as of a specific date.


Orderly Liquidation Value (OLV) is defined as an opinion of the gross amount, expressed in terms of money, that typically could be realized from a liquidation sale, given a reasonable amount of time to find a purchaser (or purchasers), with the seller being compelled to sell on an "as-is, where-is" basis, as of a specific date.


Fair Market Value in Continued Use with an Earnings Analysis is an opinion, expressed in terms of money, at which the property would change hands between a willing buyer and a willing seller, neither being under any compulsion to buy or to sell and both having reasonable knowledge of relevant facts, as of a specific date and supported by the earnings of the business.


Replacement Cost New is the current cost of a similar new property having the nearest equivalent utility as the property being appraised, as of a specific date.

Definitions of Value: (Source: Machinery & Technical Specialties Committee of the American Society of Appraisers – July 25, 2010).

 


 

HeliValue$ defines:


Fair Market Value in Continued Use (FMVICU) the FMVICU as an opinion expressed in terms of money, at which the property would change hands between a willing buyer and a willing seller, neither being under any compulsion to buy or to sell and both having reasonable knowledge of relevant facts, as of a specific date and as an ongoing support to an operation.


Net Orderly Liquidation Value (NOLV) the NOLV as the estimated net amount after sales expenses (brokerage fee, insurance, time value of money) that each helicopter would bring in a liquidation sale, given a reasonable amount of time to find a purchaser, but where the seller is compelled to sell on an "as-is, where-is" basis.