Independent Insight for Value Opinions
Insurance companies and their clients engage Marshall & Stevens to provide independent opinions of value of machinery, equipment, vehicles, furniture, fixtures, buildings and improvements for insurance placement and dispute purpose.
From observatories to historic churches, pulp mills and manufacturing plants to retail distribution centers, our team is called upon to provide analyses for a wide range of assets and properties.
Replacement Cost New can mean many things depending on the policy. Most policies insure to the standard definition of Replacement Cost New, meaning the subject property can be replaced with assets with near equivalent utility.
Reproduction Cost New is often the standard for custom properties, historic buildings, and older properties where new technology exists. Reproduction Cost New is the cost of replicating an exact replica of the property. In either case exclusions can be deducted as specified in the policy.
Property, Plant and Equipment
Professionals in our Machinery and Equipment and in our Real Estate Valuation practices perform valuations for insurance placement and dispute. Analyses are best performed with a site inspection, but desktop analyses are performed upon request.
Fixed Assets
We like to discuss the use, service, and maintenance of the assets with your facility manager so that we gain an appreciation for the useful life and condition of the assets – two considerations that greatly affect the value of assets. We can also clean up the asset list so that you are not insuring assets no longer in use. An asset list cleanup may also reduce your property taxes.
Combination and Efficiency
Clients oftentimes engage us to perform valuation analyses for multiple purposes at the same time, gaining efficiencies by having us produce insurable value analyses at the same time as cost segregation analyses, property tax analyses, ghost asset analyses (fixed asset cleanup), purchase price allocation and/or collateral lending analyses.
Consulting
Consider us a trusted resource. We provide valuation consulting from before assets are acquired, before insurance policies renew, during the renewal process and, on occasion, after an insurable loss.
Industries Served:
- Agriculture
- Automobile, Truck, and Bus Manufacturing and Assembly operations
- Broadcast, Entertainment, and Telecom
- Construction
- Education
Energy Generation and Distribution - Food Service and Production
- Government
Healthcare and Medical Facilities - Hospitality
Manufacturing Plants including Chemical Plants, Paper Mills, Steel Mills, etc. - Material Handling
- Mining ans Oilfield
- Religious Institutions
- Research and Technology
How Marshall & Stevens can help with Insurance Valuation
Our Insurance Valuation team collaborates with our internal multi-disciplinary professionals to provide the value analyses and fresh independent opinions to fiduciaries, financing sources and investors for public and private company transactions.
Business Valuation
Whether for purchase, sale, investment, gifting, recapitalization, or equity/option grants, establishing an understanding of value is crucial for decision makers.
Real Estate Valuation
Attorneys, accountants, wealth managers and financing sources refer their clients to Marshall & Stevens because we deliver high-quality work through an insightful, service-oriented approach.
Machinery and Equipment
Our Machinery and Equipment valuation professionals spend the time necessary to provide reliable analyses.
Frequently Asked Questions
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We work with our clients and their financial institutions, investors, insurance companies, and other trusted advisors to provide the independent value opinions they require.
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Upon request, we provide diverse value opinions for the same assets based upon the purpose and standard of value to efficiently accommodate the need for financing, financial reporting, tax reporting, and insurance. The efficiency in performing all these analyses at the same time leads to pricing benefits for our clients.
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Most companies are diligent about adding acquired assets to their books. A large percentage of companies do not focus on eliminating assets from their books when sold or retired. The asset may have reached a $0 depreciable value, but each asset costs money when it comes to the replacement value for insurance purposes. Why does a 200-bed hospital have 500 beds on its asset list? Why does a 600-seat multiscreen movie theatre have 1,000 seats on its books and a projector from 1993?
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Our specialists have a great deal of experience providing detailed replacement cost analyses that help our clients negotiate a lower property insurance cost.
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We perform onsite inspections of facilities to improve the accuracy of the asset records and the valuation analysis. Site inspections keep investors from capitalizing and paying for property taxes and insurance on assets no longer owned or in use (aka Ghost Assets).
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There is often a material depreciation benefit to stepping up the value of acquired assets vs taking them over at book value. We provide preliminary estimates to determine if the fair value step up of the acquired assets is worthwhile to the acquiror.
We also find that sellers’ asset lists typically include a material percentage of assets no longer in use (“ghost assets”). Cleaning up the asset list can benefit a buyer in numerous ways:
• Reducing goodwill
• Not paying for insurance and property tax on assets that don’t exist.
• Complying with audit requirements to have control of their assets. -
Real estate should be looked at strategically for potential beneficial tax reporting, financial reporting, depreciation including cost segregation and bonus depreciation, financing including sale leaseback, etc.
For financial reporting, the value of acquired real estate needs to be allocated to land, building and improvements, and intangible assets.
The fair market value of acquired real estate is often much higher than the seller’s capitalized basis and the allocation between land (not depreciable) and improvements (depreciable) is often different than what the assessor has determined.
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Marshall & Stevens values companies and assets around the world. Our staff travels as necessary to conduct site inspections, management interviews and perform other due diligence.
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Don’t enter into discussions to sell your business without having an understanding of the value of your business and the tax implications of the transaction. We can help.
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These assets may be held outside the business and leased back to the business, and/or to other businesses, in order for you and your family to maintain control of the asset into perpetuity.
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A 409a analysis (IRS section 409a) refers to valuing the class of equity provided to parties without remuneration (as an incentive) for federal tax reporting purposes. The analysis is also required for financial reporting purposes (FASB ASC 718). The analysis typically requires a valuation of the underlying business or assets. Sometimes we can backsolve a value for the equity based upon a recent subject company transaction.
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Each audit firm has their preference for the way certain financial instruments should be valued. We initiate a call with the audit team before performing the analyses to reduce the potential for delays and surprises.
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A SPAC is a public company; as such, all public company transactions receive scrutiny from a larger audience than private company transactions. That said, fairness opinions differ by scope of work – are we being asked to opine only to the consideration being paid (or received) or are we to also opine as to the process undertaken to arrive at the proposed transaction.
Our SPAC / de-SPAC transaction fairness analyses and opinions are typically done in phases to address value first, then fairness of the transaction consideration to the party engaging us.
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We review financial projections against past performance, comparable company performance, and industry forecasts. We ask for support from our clients, as necessary, to make us comfortable with their projections and to provide an explanation in our valuation report.
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We focus on efficiency. Our team includes senior valuation professionals with experience working at international audit firms – they did the same review work your audit firm valuation professionals do – making them a great resource to our clients. These specialists understand the materiality thresholds while meeting regulatory requirements.
We provide negative and positive assurance letters upon request.
The Marshall & Stevens Difference
Marshall & Stevens provides Fairness and Solvency Opinions, valuation analyses, investigative accounting, and expert witness services to assist public and private clients with their important transactions and litigation matters.
Client Highlights
Here are a few client success stories from public and private companies we’ve worked with
Insurance Valuation Contacts at Marshall & Stevens
Background
Patrick Craig is a Principal, Executive Managing Director, and National Practice Leader for the Real Estate Valuation Practice at Marshall & Stevens Incorporated.
Mr. Craig has over 30 years of experience in the real estate business involving valuation of single assets or portfolios, serving clients in the financial services, banking, REIT, insurance, legal, accounting, audit, corporate, development, pension and asset management sectors. His experience includes valuation and consulting for proposed and existing real estate projects and real estate portfolios including office, industrial, apartment, retail, hotel, mixed-use, self-storage, and community facility uses. He has also worked on matters of dispute including serving as a valuation expert in litigation.
Mr. Craig entered the real estate business in 1986. Prior to joining Marshall & Stevens, he led the Northeast valuation practice for Colliers International, while running the firm’s Portfolio Valuation Group and Business Innovation Committee and serving on the firm’s Global Leadership Team. Prior to Colliers International, he spent almost two decades with Cushman & Wakefield serving in numerous leadership roles including co-leader of its Portfolio Valuation Group, as Chairman of the firm’s Business Innovation Committee, and as a member of the Global Business Initiatives Council. Prior to Cushman & Wakefield, he held real estate appraisal positions at Dorman & Wilson and European American Bank.
He has served on the Board of Directors for the NY Chapter of the Appraisal Institute. He is an affiliate member of ADISA, a member of the Real Estate Board of New York, NCREIF, and the International Council of Shopping Centers. He is licensed as a Certified General Real Estate Appraiser in: New York, New Jersey, Connecticut, Pennsylvania, Georgia, Florida, Michigan, Virginia, Iowa and Illinois.
Professional Highlights
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- Board of Directors, New York Chapter, former
- Affiliate Member, Alternative & Direct Investment Securities Association (ADISA)
- Member, Real Estate Board of New York
- Member, National Council of Real Estate Investment Fiduciaries (NCREIF)
- Member, International Council of Shopping Centers
- Marshall & Stevens, Inc.
Executive Managing Director, 2013-present - ARGUS Software
Senior Vice President, Client Management, 2012-2013 - Colliers International
Regional Managing Director - Northeastern US, 2010-2012 - Cushman & Wakefield
Senior Managing Director, 1991-2010 - EAB Bank
Vice President, 1990-1991 - Dorman & Wilson
Associate, 1986-1990
Background
Greg Feldman is a Managing Director with Marshall & Stevens Incorporated and MS Capital. He is responsible for business development and client management.
Mr. Feldman joined Marshall & Stevens in 2010. He works with public and private companies and their trusted advisors to provide valuations of businesses, equity and debt instruments, intangible assets, machinery & equipment, and commercial real estate including cost segregation studies. Analyses are provided for buy/sell consideration, financial reporting, financing and recapitalization, tax planning and reporting, insurance placement and dispute resolution.
Prior to Marshall & Stevens, Mr. Feldman successfully served in business development and operational roles within a diverse group of industries including Big 4 and other international accounting firms, retail, consumer products, and printing.
Mr. Feldman has received extensive training in Sales, Sales Management, Negotiation, Project Management and overall Business Development.
He is active on several boards including Bloomingdale Youth Sports Association and the Tampa Chapter of Association of Corporate Growth (“ACG”) serving as the Membership Committee Chair.
Professional Highlights
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- Membership Committee Chair, Association of Corporate Growth, Tampa Chapter
- Marshall & Stevens, Inc.
Managing Director, Business Development, 2010-present - Grant Thornton LLP
Business Development Executive, 2010 - Ernst & Young
Business Development Executive, 2007-2010 - RR Donnelley (formerly Wallace Computer Services)
Regional Sales Manager, 1992-2007
Background
Anthony Festa, ASA, is a Managing Director in the New York Office’s Machinery & Equipment Practice of Marshall & Stevens Incorporated. Mr. Festa’s responsibilities include overseeing the delivery of valuation services to the Firm’s machinery and equipment valuation clients.
Mr. Festa leads asset valuations for buy/sell consideration, financing, insurance, tax reporting, and financial reporting purposes including purchase price allocations (ASC 805), impairment testing (ASC 350 and ASC 360), and Internal Revenue Code Sections 861, 382, and 704(c). Financing engagements include valuations for leasing and other structure finance transactions and bankruptcy/reorganization including fresh-start accounting.
Mr. Festa has served clients in a wide variety of industries including, but not limited to: automotive, aerospace and defense, broadcast and communications, chemicals, entertainment, financial services, food production, healthcare, hospitality, mining and milling, pharmaceutical, pulp and paper, restaurants, semiconductor, telecommunications, textiles, water and other infrastructure projects.
Specific to the water infrastructure industry, he has performed valuations for several Texas-based investor-owned water and wastewater plants for a transaction, a New Jersey township for a transaction, and a New Hampshire wastewater plant for financing purposes. He is an associate member of the National Association of Water Companies (NAWC) and has spoken at numerous professional conferences on the valuation of water utilities including the NAWC Water Summit in 2019.
He is an Accredited Senior Appraiser (ASA) in Machinery & Technical Specialties with the American Society of Appraisers. He has served in multiple leadership roles for New York City chapter of the American Society of Appraisers including President of the chapter in 2010-2011.
Professional Highlights
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- Member, American Society of Appraisers, New York Chapter
- President, 2010-2011
- Marshall & Stevens, Inc.
September 2022-present
‣ Managing Director, National Practice Leader - Machinery & Equipment, 2023-present
‣ Director, 2022-2023 - Cushman & Wakefield
Director, 2018-2022 - Alvarez & Marshal
Senior Director, 2012-2018 - American Appraisal Associates
Director, 2005-2012 - Ernst & Young
Manager, 1997-2005 - Lehman Brothers
Tax Accounting Intern, 1996-1997
- Valuing Specific Assets in Divorce, contributing author, first published by Aspen Publishers in 2000, updated in 2009 and 2013
- Valuation Strategies in Divorce, fourth edition (contributing author), Aspen Publishers, 2009
- December 2007, co-presenter in Greensboro, North Carolina to the North Carolina Department of Revenue on the “Valuation of Idle Equipment”
- February & March 2016, presenter in Washington, DC and Augusta, Georgia to the National Association of Regulated Utilities Commissioners on the “Valuation of Water Utilities”
- August 2016 and 2018, presenter in Denver, Colorado and Washington DC, respectively, to the Water Finance Conference on the “Valuation of Water Utilities”
- July 2018, co-presenter in Toronto, Canada to the American Society of Civil Engineers on the “Valuation of Water Utilities”
- October 2019, panelist in Nashville, TN at the National Association of Water Companies’ 2019 Water Summit on “Fair Market Value Legislation”
- Podcast interview via Soundcloud – Assessing and Valuing Water Systems
- ASA NYC chapter presentations including “M&E Valuation Concepts under ASC 360,” and “M&E Financial Reporting Audit Issues”
Background
Robert Owens is a Director for the Machinery and Equipment and Cost Segregation practices at Marshall & Stevens Incorporated. He specializes in the valuation of machinery, equipment, buildings and improvements.
Active in the appraisal profession since his association with Marshall & Stevens in 1985, Mr. Owens prepares and supervises appraisals for the purpose of financial reporting (purchase price allocation and impairment), financing, tax planning and reporting including cost segregation, insurance placement, ad valorem, bankruptcy, litigation support, eminent domain.
Mr. Owens has experience preparing valuations for public and private companies in various industries, including, but not limited to agriculture, automotive, educational and religious institutions, electronics, semiconductor and related technology industries, energy production and distribution, food and kindred products, hospitality and gaming, manufacturing, medical, pharmaceutical, research and development, water distribution and waste treatment. His assignments often require international travel for property inspections.
Mr. Owens attended Hillsborough Community College and Oglier Heavener School of Real Estate. He is an Accredited Senior Appraiser (“ASA”) of the American Society of Appraisers, machinery and equipment discipline. He has served in numerous leadership positions for the Tampa Chapter of ASA including Chapter President.
Mr. Owens has testified as an expert witness before the United States Bankruptcy Court.
Professional Highlights
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- Marshall & Stevens, Inc.
Director, 1985-present
Relevant Insights
Cost Segregation and Estate Tax Reporting – Tax Reduction for Heirs!
Real Estate Valuation Consulting
