Appraisal and Valuation Services for Renewable Fuels Industry

Appraisal and Valuation Services for Renewable Fuels Industry.  Determining and documenting the value of renewable fuels businesses and plants is done for various reasons.  The most common occasions for seeking an appraisal of the ethanol, biodiesel, or other renewable fuels businesses and plants arise when they are created or constructed, bought or sold, and concern financing, investment due diligence and tax reporting.  There are many other accounting, legal, bankruptcy, and litigation uses. These are complex businesses and assets, requiring specialized industry, financial and engineering capabilities within the appraisers.  Valuations must consider an asset approach (cost approach, what is the cost to create the business or build the plant), a market approach (sales approach, where sales in the market for such businesses and plants indicate value) or an income approach (where the business’s or plant’s earnings are forecast long term and converted to an opinion of value).  All financial aspects of the business or plant must be forecast in the income approach, such as all income and expense levels, taxes, debt, related commodity prices, incentives, short and long-term trends, and of course, standard and special risks.  It is key in these appraisals to know when one or more of these approaches are inappropriate or less than precise.

Depending on the client’s purpose and use for which the service is needed, there are many types of Appraisal and Valuation Services, each varying in complexity and cost.  The simplest is the value calculation.  These provide an approximate indication of value based on limited procedures.  The next step would be a summary appraisal.  This report contains a summary of the material factors that leads to the conclusion as to the value and may or may not have limited procedures.  The highest level is the full analysis and extensive narrative appraisal.   This is a lengthy presentation of the appraisal of the business or plant, where the analysis approaches completed are not limited.  The full analysis and extensive narrative appraisal are usually needed for investment, financing, litigation, and some SEC and IRS uses.

Experts in the appraisal of renewable fuels business and plants must have substantial and specialized economic and engineering capabilities, in addition to the general and specialized appraisal capabilities. These skills include business appraisal, machinery and equipment appraisal, and real property appraisal capabilities.  The appraisers ought to be designated by the American Society of Appraisers or the Appraisal Institute, and may require state licensure.   We have such qualifications.  Bioeconomy consulting firms like Lee Enterprises Consulting, Inc., have ASA Certified Sr. Appraisers in Machinery & Equipment as well as other specialties, and Certified Business Valuations Experts,  as well as designated subject matter experts in biofuels/renewable fuels, biomaterials, biomass and biomass power, feedstocks, biotechnologies and a variety of specialty services.  The expertise encompasses algae biofuels, aviation/bio-jet fuels, ethanol, cellulosic ethanol, advanced biofuels, biodiesel, renewable diesel, renewable natural gas, renewable and biochemicals, biogas, syngas, biochar, bio coal, biobutanol, pyrolysis oil, producer gas and wood pellets.  It will also encompass expertise in technologies like agitation systems, anaerobic digestion, bio-oil extraction, bioreactors, carbon capture, carbon storage, carbonization, catalysis, cellulosic ethanol, cleantech, direct combustion, , enzyme technologies, fermentation, Fischer-Tropsch, gasification, genetic engineering, hydrothermal,  nanotechnology, organosynthesis, power generation, pyrolysis, renewable technology due diligence, synthetic biology, thermochemical conversion, torrefaction, and waste management.

For more than 25 years, Lee Enterprises Consulting has been at the forefront of the bioeconomy. Our highly differentiated market position centers around our deep subject matter expertise in very specialized areas. We help clients minimize technical and economic risk by leveraging best practices in our industries, and we have a long track record of providing insightful analysis and practical advice. Our reputation is unparalleled because we provide a simplified process, with a single point of contact to a diverse international network of proven experts in biofuels, biomaterials, feedstocks, alternative proteins, and existing & emerging technologies. Providing access to over 150 world-renowned bioeconomy experts allows us to create tailored solutions to meet each project’s individual needs.  Please take a look at our experts and the services we provide. Call us at 1+ (501) 833-8511 or email us for further information. See Appraisal and Valuation Considerations in Acquisitions.