Services

Services

Valuation of financing objects within the framework of the credit decision (collateral valuation)

Machinery and technical equipment can serve as collateral for loans, both in direct object financing (e.g. leasing, hire purchase, etc.) and in the context of a transfer of ownership by way of security.

In the context of a financing decision, the collateral received is taken into account for credit risk mitigation. The valuation of machinery and technical equipment, which serve as real collateral for this purpose, differs fundamentally from the usual machinery valuations. Physical collateral must comply with the requirements of articles 210 and 211 of the Capital Adequacy Regulation (CRR) on a regular basis. In addition, properties financed by means of leasing must fulfil the fungibility requirements as defined in the leasing ordinances. In addition to the verification of abstract suitability, the focus is on an updated assessment under risk aspects (minimum requirement for risk management).

We perform machinery and technical equipment valuations with special regard to the requirements of credit institutions and leasing companies. Our expertise is incorporated into the credit decisions of the institutions. As independent external specialists, we meet the requirements of both banking supervision and refinancing structures.

Ongoing validation of valuation approaches (portfolio valuation)

The values of physical collateral used to minimise credit risk must be regularly reviewed by institutions and revalued if necessary. In particular, technical leaps in development or concentration processes in certain industries can lead to substantial losses in the value of an entire type of machine. This leads to a need for action, especially for loan portfolios with a high sector affinity.

We support institutions in the ongoing monitoring of your technical property security. We identify the need for value adjustment at both portfolio and individual levels. In addition, we monitor the fulfilment of contractual obligations, such as the continuous insurance of the properties against property damage.

Determination of time and market values

Existing machinery and technical equipment must be valued both in the financing of used equipment and in company acquisitions, restructuring or succession planning. Depending on the objective, different value approaches are used.

We determine reporting date values and prepare progress forecasts for residual values, breakup values and continuation values. We take into account the availability of replacement investments, the operational necessity of the plants, the underpinning with supply contracts or also the supplier position (e.g. single source) of the plant owner.

Disposal support

The disposal of technical equipment and machinery can be a time-consuming process in which the services of various specialists have to be coordinated. Depending on the type and complexity of the equipment, different requirements are placed on dismantling, transport and, if necessary, repair or refurbishment.

HDB Consulting has a network of specialised service providers, dealers and auctioneers with whom we can cover all aspects of property marketing.