Inventory and Spare Parts


Inventories and Spare Parts are valuable assets. SAI has experts in the valuation of inventories and spare parts, especially as it pertains to aviation. Aviation has many idiosyncrasies when it comes to valuing these assets; from regulatory concerns, to age, shelf life, and time life limits, to storage and storage facilities.

SAI’s staff considers and understands the aviation industry and knows the differences between new, remanufactured, reconditioned, factory overhauled, field overhauled, serviceable, and rejected components. Each one of these conditions influences value; however, our experts are experienced and trained to accurately place the correct value where it belongs.

Inventories and spare parts are typically appraised in connection with factoring, taxation, litigation, lending, or for purchase price allocation. Factoring is a method of financing seasonal inventory such as light aircraft, which has a bigger response in the spring after a long winter. Factoring can also be used to complete current contracts or borrow money based on accounts receivable. In manufacturing, inventories can include raw materials, work in progress, finished goods, and dead or moving stock.

Market absorption is an important consideration in developing a value premise as defined by the scope of a specific project. SAI has developed and internal market absorption analysis to determine if the market can realize certain volumes of inventories that might have multiple repeats of the same part over a predetermined time frame. This concept focuses on the asset’s specific market, how many are available, how many are needed to be disposed of, the length of time, and the market demand.

SAI has the experience, network, and resources to value large and small quantities of new and used parts. Our experts are in tune with the FAA in the United States and the international regulatory environment to conclude an accurate value of these assets. Our staff is also experienced in the issues surrounding certification of parts and components as it pertains to certificated aircraft.

SAI can accurately conclude the Fair Market Value, Orderly Liquidation, Forced liquidation, Scrap or Salvage value that is required to meet the needs of the parties involved, lessor, lessee, lender, company, attorney and much more . Additionally, we can help with the processes of parting out for salvage as it relates to value.

For a free consultation, call 815-786-2826. Also, you can drop a note via web form from our CONTACT US page.