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Valuations

Background
Mid-America has appraised more than 35 mineral properties and businesses. Its appraisals include quarries, coal mines, undeveloped mineral properties and related businesses such as asphalt production businesses.

The appraised mineral properties are located in 11 states. These include:

  • Florida
  • Illinois
  • Indiana
  • Kentucky
  • Missouri
  • New Hampshire
  • New York
  • Ohio
  • Oklahoma
  • Pennsylvania
  • Texas

The firm's president has authored two published articles dealing with the subject of Valuations:

Describes various valuation methods used to determine the fair market value of an operating quarry or mine.

Describes how to determine the value of an undeveloped mineral property.

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Clients
Mid-America's clients include construction aggregate companies, coal companies, owners, law firms, banks and other financial institutions. A representative list of clients includes:

  • E.R. Linde (PA)
  • National City Bank (KY)
  • Kenly Materials (NY)
  • Liter's Inc. (IN, KY)
  • Lafayette Coal (IN)

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Scope
Mid-America's appraisals have been used by our clients for several varied purposes. Typical uses of our appraisals include:

  • Transactions
    • Used by sellers to establish fair market value and a "fair" sales price.
    • Used by purchasers to determine if they're getting a "fair" purchase price
  • Bank Financing
    • Used by banks and other financial institutions to establish collateral value.
  • Tax Appraisals
    • Used to establish value for 1031 property exchanges and estate purposes.
  • Litigation & Arbitration
    • Used to establish value for divorce settlements and lease disputes.

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Our Approach
Mid-America's appraisals use the methodology set forth by the Uniform Standards of Professional Appraisal Practice. We value the subject property, or operating business, using the three accepted valuation techniques: Income Approach, Asset-Based Approach and Market Approach. Our appraisals require and include a thorough assessment in order to prepare the long-term pro forma financial statements necessitated by the Income Approach.

A typical scope of work includes a site visit to obtain first hand information regarding the mineral deposit, the mine, its equipment, the market and the quarry's competitiveness. We review historical financial performance, mineral leases, supply contracts, operating permits and market intelligence.

The two published articles (referenced above) provide a further explanation of all the factors Mid-America considers in performing its appraisals.

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A Few Examples
The following examples provide a brief summary of a few of the mineral properties we've valued for our clients.

  • Liter's Inc. (IN, KY)
    • Valuation performed to establish collateral value for a bank loan. The appraisal included four surface quarries, one underground quarry and a sand & gravel pit. The combined annual sales volume was in excess of 3.5 million tons.
  • Quinn Brothers Corp. (NH)
    • Valuation performed to establish a fair sales price for the business. The business valuation included a large quarry and a six ton asphalt plant. Subsequently, Mid-America was retained as its exclusive sales agent and the business was sold to a subsidiary of Oldcastle Materials, Inc
  • National City Bank (KY)
    • Valuation performed to establish collateral value. The appraisal included a Florida operator producing various construction aggregates from a surface pit. Annual sales volume was approximately 750,000 tons.
  • Confidential Coal Client (IN)
    • Valuation performed on behalf of prospective purchaser to establish a fair purchase price for an Indiana coal producer. Annual sales revenues were approximately $40 million.
  • E.R. Linde (PA)
    • Valuation performed to establish collateral value for a bank refinancing following an acquisition. The operating assets included two quarries and a 4 ton asphalt batch plant.

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P.O. Box 908
O'Fallon, IL 62269
(618) 624-0155