Advisory Valuations Disposals

Transcription

1 JAJ Cnsultants LLC A ValuStrat Grup Cmpany Advisry Valuatins Dispsals Dubai Head Office 703 Palace Twers, DSO, P.O.Bx , Dubai, UAE

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3 Dear Readers, We are pleased t present t yu ur first Heavy Equipment Price Index Reprt, which we hpe will be a surce f benefit t yur cmpany. Given the increasing imprtance f heavy equipment in the bming cnstructin and real estate industry in many parts f the Middle East, we believe that this reprt will be very useful t many f ur clients, especially thse invlved in financing this equipment. As always, we are eager t hear ur clients valuable feedback n all ur wrk. Please d let us knw if yu have any suggestins fr further imprvement f this reprt and we wuld be happy t discuss yur feedback and make all effrts t enhance its cntents. Thank yu fr yur cntinued supprt. JAJ s Industrial Cnsulting Divisin specializes in a variety f cnsulting services fr the industrial sectr including valuatin, technical due diligence, asset divestments, market research and feasibility studies all f which relates t prductin facilities, heavy equipment and machinery f virtually all types and scale. These services prvide very valuable insight t a wide crss-sectin f industry players and a part f this insight is what we wuld like t present t yu thrugh this brief but hpefully useful reprt. Accurate valuatins f heavy equipment and regular mnitring f their pricing trends is critical in the business f heavy equipment finance. With ur extensive experience spanning ver 35 years in this business, we hpe t present t yu credible and timely infrmatin and analysis abut this sectr. Sincerely, Shahid Kazi Chief Executive Officer ValuStrat Grup ValuStrat Cnsulting. JAJ Cnsultants. Hilc-ValuStrat 3

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5 The analysis in this reprt has been derived frm 839 data pints cllected by JAJ Cnsultants. These pint were selected frm actual valuatins cnducted by ur team between April 2012 t April These valuatins were cnducted fr secured lending r financial reprting purpses. Thus the indices presented are just indicative f the value trends f the autmbiles in cming years and shuld be treated as such. JAJ takes n respnsibility f any deviatins frm these expectatins fr any autmbile, as valuatins will differ significantly n a case t case basis. JAJ s team f experts analyzed the values f 40 different types f heavy equipment prducts including Piling Rigs, Twer Cranes, Mbile Cranes, Wheel Laders, Tractr Heads, Bulldzers, Excavatrs, Mtr Graders, Generatrs air cmpressrs etc. spanning ver 28 brands. The years f manufacture f these equipment's ranged frm 1989 t Our team selected types f equipment that were mst ppular amngst ur clients and the year f manufacture in which we had the highest data pints (in this case 2007, 2008, 2009). Price Index Methdlgy A price index is a measure f the prprtinate, r percentage, changes in a set f prices ver time. A price index measures changes in the prices f gds and services. As the prices f different gds and services d nt all change at the same rate, a price index can nly reflect their average mvement. A price index is typically assigned a value f unity, r 100, in sme reference perid and the values f the index fr ther perids f time are intended t indicate the average prprtinate, r percentage, change in prices frm this price reference perid. It must be pinted ut that valuatin is als dependent upn several ther factrs, including but nt limited t the cnditin f the equipment and usage. The starting date f the indices vary frm equipment t equipment depending n the earliest availability f data, thus the indices shuld be used t evaluate price trends acrss time rather than acrss equipment types. 5

6 Our research shws that the prices f truck heads have increased frm furth quarter f 2012 due t the demand and the lack f availability f used 6x4 truck heads in the market. We anticipate that the prices will mst likely remain stable in the 2013, because f the availability f new stck. Truck Head 6x4 (Year f Manufacture 2008) Nv Dec-12 6-Jan Jan Feb-13 7-Mar Mar Apr-13 6

7 There has been an imprvement in the prices f wheel laders and excavatrs frm 2012 nwards. The prices f this asset class (used) will cntinue t increase due t the imprvement in the cnstructin industry f UAE especially Abu Dhabi. Excavatr (Year f Manufacture 2007) Oct Nv-12 7-Dec Dec Jan-13 5-Feb Feb Mar-13 6-Apr Apr-13 7

8 There is an increase in demand f used 3 Axle Trailers in the UAE leading t an increase in price f this asset class. We anticipate that the prices f used 3 axle trailers will cntinue t increase due t the high differential in the pricing f new and used trailers. 3 Axle Trailer (Year f Manufacture 2007) Oct-12 7-Nv Nv Dec-12 6-Jan Jan Feb-13 7-Mar Mar Apr-13 3 Axle Trailer (Year f Manufacture 2008) Feb-12 1-Apr May Jul Aug Oct-12 7-Dec Jan Mar-13 6-May Axle Trailer (Year f Manufacture 2009) Oct-12 7-Nv Nv Dec-12 6-Jan Jan Feb-13 7-Mar Mar Apr-13 8

9 Our ipad based valuatins systems enable us t prvide clients with a draft reprt 15 minutes frm the time f survey and final reprts 1 hur frm the time f survey. Our ipad based heavy equipment valuatin system is built fr the highest levels f perfrmance. It is incredibly pwerful and yet, remarkably simple. With JAJ s valuatins system we prvide valuatins within 1 hur frm the time f survey, which is 23 hurs less than ur previus time. Our team specializes in the advisry f all types f heavy equipment which includes: Piling Rigs Twer Cranes Mbile Cranes Wheel Laders Tractr Heads Bulldzers Excavatrs Mtr Graders Generatrs air cmpressrs Our experienced heavy equipment team prvides instant valuatins t cater t ur clients needs; within 15 minutes f the survey a draft reprt is sent directly t yur inbx. Our innvative reprts include a timestamp t insure timeliness and high reslutin pictures fr verificatin that the vehicle has been physically inspected. T prvide ur clients with the highest quality f reprt we have designed each input field t be unique. All ur valuatin frms have smart learning t ease the input f infrmatin fr ur surveyrs and at the same time prduce faster results. We have als set restrictins n each field t avid typing mistakes and ensure the cmpleteness f the data, ur frms d nt accept chassis number abve r belw 17 characters r valuatins withut a picture. Abut ValuStrat / JAJ JAJ Cnsultants is part f ValuStrat - the Middle East s premier cnsulting grup invlved in Advisry, Valuatins and Asset Divestments. JAJ Cnsultants is the grup s asset valuatin arm fr UAE. We have been active in the Middle East since 1977 and have maintained an exceptinal track recrd. The firm s expertise lies in Strategic Advisry and Valuatins acrss varius industry sectrs. We prvide advisry services t sme f the largest develpers, manufacturers, accunting firms and family ffices in the regin. 9

10 ValuStrat is invlved in Advisry, Valuatins and Asset Divestments. We have been active in the Middle East since 1977 and have maintained an exceptinal track recrd. ValuStrat is invlved in Advisry, Valuatins and Asset Divestments. We have been active in the Middle East since 1977 and have maintained an exceptinal track recrd. JAJ Cnsultants is ValuStrat s asset valuatin arm in UAE. The grup s expertise lies in strategic advisry and asset valuatins acrss varius industry sectrs, and industrial asset divestment services thrugh the Hilc-ValuStrat jint venture. ValuStrat s Advisry Divisin prvides cnsulting and advisry services t sme f the largest develpers, manufacturers, accunting firms and family ffices in the regin and fcuses mainly n strategic advisry, market research, feasibility studies, highest and best use analysis, market research, industry research, sectr analysis, financial mdeling and business valuatins. ValuStrat has been respnsible fr wrking n sme f the mst icnic prjects in the Middle East fr the last three and a half decades. Keeping the traditinal values, we cntinue t innvate and prvide ur clients with unique prducts in this extremely cmpetitive market place. Abut Hilc-ValuStrat (Jint Venture) Hilc prvides industrial asset dispsitin services, specializing in machinery, equipment and inventry auctins and negtiated sales. It sells the brad range f industrial assets fund in manufacturing, whlesale and distributin cmpanies. Hilc Industrial perfrms dispsitins thrugh n-site, nline and cmbinatin webcast auctin sale events as well as negtiated (private treaty) sales. Hilc Industrial has capital t put at risk and ften acquires assets r prvides guarantees. It als prvides asset dispsitin services n a fee r cmmissin basis. Hilc Industrial began peratins in its current frm in Hilc Industrial cnducts mre than 75 machinery and equipment auctins and rderly liquidatins per year cvering the bradest spectrum f industries, cmpany types and levels f technlgy. Hilc s crprate lineage spans mre than 50 years, and in that time and have repsitined assets valued at mre than $3 billin. ValuStrat s grwth is intrinsically linked t the Middle East. Althugh the grup has seen much grwth in the last decade, ur purpse has never wavered: t prvide tp quality services and prducts that challenge the status qu, thrugh a large and experienced team which is a vital part f the grup s eths. 10

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