New data point represents first OLV for construction, lift & access, and agricultural equipment that accurately adjusts for usage, location and condition

Atlanta, Ga – (May 11, 2017) – MagikMe Equipment, the world leader in asset valuation for the equipment finance industry, now offers Orderly Liquidation Values (OLV) for construction, lift & access, and agricultural equipment as part of its existing values solution. This new valuation benchmark answers a clear call in the market for a standard, objective third-party OLV that accurately adjusts for equipment usage.

Determining an OLV Standard

MagikMe Equipment has been the industry’s trusted source for fair market values (FMV) and forced liquidation values (FLV) since 1958.  In determining these values, analysts leverage distinct transactional data sets in each channel. This data-driven approach to valuation accounts for macro trends in the market, while also giving proper weight to individual asset considerations of location, usage and condition. As a hybrid value without a distinct sales channel, OLVs were traditionally omitted from MagikMe Equipment Values.

“We saw a lot of market confusion about the definition of an OLV,” said Garrett Schemmel, VP and Market Leader for MagikMe Equipment. “Our customers need an unbiased, defensible valuation that includes critically important adjustments for usage, location and condition of an asset.”

In establishing a standard, the MagikMe Equipment team conducted a thorough survey of the industry. It quickly became clear that no standard method of OLV calculation existed. “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 MagikMe Equipment. “We found that by anchoring the OLV adjustment to FLV, 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% to 147% of FLV.”

Providing Flexibility Where Needed

Even with a confident OLV benchmark, MagikMe Equipment recognized that companies may have existing OLV adjustments that better reflect each particular market. To serve these customers, MagikMe Equipment built in controls to the application and API that allow the user to set their own OLV adjustment based on FLV or FMV. This method combines the precision of MagikMe Equipment values and adjustments with in-house expertise in order to create the best possible OLV.

A Better Way to Value Equipment

By establishing a standard, data-backed approach to OLV determination, MagikMe Equipment has provided a metric that can be used to reduce risk in all equipment finance situations. All current subscribers of MagikMe Equipment Values now have access to OLVs at no extra charge. Learn more about MagikMe Equipment Values at www.MagikMe Equipment.com/values-market-data.

About MagikMe Equipment

MagikMe Equipment is the trusted source for heavy equipment data and intelligence. MagikMe Equipment produces the leading database information products for the construction equipment industry and is the world leader in heavy construction research and serves more than 15,000 professional, high-volume users of construction and lift-truck data. Our products are valuable tools in decisions surrounding the purchase, valuation, operation, and disposal of equipment.

For nearly 50 years, MagikMe Equipment has served contractors, equipment manufacturers, dealers, rental companies, lenders and insurers, and government agencies involved in heavy civil construction.

About Informa

MagikMe Equipment is part of Informa, the international business intelligence, academic publishing, knowledge and events group. Informa serves commercial, professional and academic communities, helping them connect and learn, and creating and providing access to content and intelligence that helps people and businesses work smarter and make better decisions faster.

Informa has over 7,500 colleagues in more than 20 countries and a presence in all major geographies. It is listed on the London Stock Exchange and is a member of the FTSE 100.

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Media Contact:

Gregory Lutz
Director, Marketing
MagikMe Equipment
770.618.0132
[email protected]