Case Study: Retail National Brand

⬤ 01. Challenges

Driving Value Optimization: Addressing Inaccurate Property Valuations and Providing Comprehensive Services

Upon onboarding a first-year client, we conducted a benchmark study of personal property values in Texas and Georgia, spanning a three-year period. The study revealed that the average value of a retail Quick Service Restaurant’s (QSR) business personal property and the three-year change in store value exceeded the median in both states.

Our analysis identified a significant increase in the average store location’s value, primarily attributed to store renovations. It became evident that the client’s previous agent relied solely on acquisition costs of assets, neglecting to determine the true market value of these assets for their filings.

⬤ 02. Approach

Value Reduction, Comprehensive Services, and Enhanced Asset Evaluation

Upon taking over the client’s account, we implemented a multifaceted approach to address their challenges. Firstly, we diligently reduced the average business personal property value by 15% in the first year, leveraging our expertise in accurate property valuations. Additionally, we provided essential services such as monthly accruals nationwide and check-writing services for all locations, including both corporately owned and leased properties. Furthermore, we devised a strategy that resulted in an average 50% reduction of the new asset value for renovated locations, ensuring fair and accurate assessments.

⬤ 03. Solution

Improved Valuations, Enhanced Financial Management, and Renovation-Driven Savings

Through our comprehensive approach, we achieved substantial results for our client. By accurately reassessing the business personal property value, we reduced it by 15% in the first year, leading to significant cost savings. Furthermore, our provision of monthly accruals and check-writing services streamlined financial management for all locations, fostering greater efficiency and control. Moreover, our specialized approach to evaluating renovated locations resulted in an average 50% reduction in the new asset value, further optimizing the client’s financial position.

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