Having stock valued

Valuing stocks differs from a formal valuation for a report. It involves ongoing or periodic determination of the value of stocks as collateral, essential for asset-based lending, credit facilities and risk monitoring. NTAB supports both the lender and the business owner with an informed and independent valuation.

NTAB conducts such audits for clients who need structural insight into the position and quality of inventory. This insight is essential for complex financing issues, restructurings, or acquisitions, and provides the substantiation required by Asset Based Financiers or debt advisors.

In-depth insight into value, risks, and processes

Stock valuation is often initiated by Asset Based Financiers, debt advisors or other interested parties who seek an informed, complete picture of a company’s asset position. In situations where inventory is designated as collateral, such as in asset-based lending or factoring, a standard appraisal is insufficient.

Most common situations where you need an independent stock audit:

Stock audits in all industries

Retail & e-commerce

Textile and clothing industry

Manufacturing companies

Construction & materials

Agricultural

Technical parts

Pharmaceutical

Food Industry

Audit

What does this provide for financiers and advisors?

When inventory serves as collateral, financiers and advisors benefit from facts, not assumptions. An inventory valuation from NTAB provides a clear, objective assessment of inventory and the processes behind it.

This approach enables them to:

realistically assess the marketability and recoverability of the inventory
critically evaluate inventory administration and valuation systems
identify risks such as obsolescence or aging early on
align financing structures with the actual situation
present a solid and convincing case to lenders or investors

Audit

Inventory Valuation

Whether you’re acting as a financier, advisor, or entrepreneur: an independent inventory valuation offers clarity, certainty, and a course of action. NTAB combines market knowledge with audit expertise to arrive at a sharp, current, and well-founded inventory valuation.

Frequently Asked Questions

What is the difference between a stock audit and a formal appraisal?

An audit looks broader than just value. A stock audit is a detailed on-site analysis of a (potential) borrower’s books and records, determining what the collateral is expected to yield in a liquidation scenario and how that relates to the lender’s exposure.

How often do you conduct a stock audit?

This depends on risk profile, sector and leverage. Some lenders require only a field study before initial financing or when increasing the line of credit. In cyclical industries, think clothing or food, the composition of accounts receivable and inventory can vary widely seasonally, making financial figures as little as two months old unrepresentative. Rule of thumb in practice: annual full audit, with interim spot checks or accelerated review in case of signals.

Why an independent party instead of your own team?

Three reasons that usually weigh heavily for financiers and debt advisors:

1. Independence and authority toward credit committees, co-financiers and possibly regulators
2. Sector knowledge of what is realistically marketable in a specific industry in the event of liquidation
3. Capacity without expanding own team, especially relevant at peak times (acquisitions, restructurings, syndications)