EquipmentWatch now offers Orderly Liquidation Values (OLV) for construction, lift & access, and agricultural equipment as part of its existing values solution. EquipmentWatch says it found 80 percent of its users currently use OLV in their business, but a standardized OLV calculation method wasn't available.
“OLVs represent a liquidation value when sellers have time and resources to find buyers, but unfortunately there’s no consensus in the industry of how an OLV should be derived,” said Sam Giffin, Director of Business Insights for EquipmentWatch.
“We found that by anchoring the OLV adjustment to FLV (forced liquidation value), we were able to find a generally acceptable midpoint around which an OLV could be derived. From there we determined specific adjustment factors for individual subtypes and models. The result is 156 unique equipment type-specific OLV factors, ranging from 110 percent to 147 percent of FLV.”
EquipmentWatch says the user can set their own OLV adjustment based on FLV or FMV (fair market value). All current subscribers of EquipmentWatch Values now have access to OLVs at no extra charge.