Kimbell Group provides a wide variety of consulting services.

Partnership dissolution and asset valuation

As a client and partner relationship splits up, the business and jointly owned realty may suffer from partnership dissolution. The mediator or arbitrator will need opinions of values under various conditions. The following steps are taken in this process:

  • An analysis is done of the realty and business as is and as if under separate conditions. The appraisal is done at a fixed fee.
  • Parties are met with to view their opinions of the probability of each condition occurring.
  • A meeting with the arbitrator occurs to explain our appraisal solutions. They are ranked from most probable to least probable.
  • We consult with all parties as to conditions and parameters used.

The overall cost of fixed fees and consultation hours is approximately 4% of assets current as is market values.

Buy or Lease decision for a business

This includes both basic pros and cons as well as going into the hidden costs of ownership. It shows the possible benefits of ownership and allows an owner or board of directors to see both sides and apply the internal (confidential) data to the consultant’s report.

In house (in side of lenders’ operations) compliance review prior to federal audit

Purpose: Compliance to bank regulations reviews.

Kimbell Group employs a former loan compliance officer of over 40 years who works with the current compliance officer of the lender. He spot reviews the existing loans or performs an independent review.The review will include a series of recommendations and highlights, both positive and those in need of change.

Asset allocation and valuations leading to capital (Cash) for ownership

This is done when the client is a borrower that has several retail centers that the client’s business anchors and is the owner of.

Due to the mix of ownership of business and realty we analyze each together and separately. Then we come up with suggestions that are manageable, after discussions with client attorneys, CPA, and the loan broker or underwriters. End results:

  • Assets are freed to purchase stock back from retiring shareholders
  • There is no cross collateralization
  • The business and realty are separated.

The cost is approximately 2% of the assets current appraised value, including legal and CPA.

Maximizing value of special use realty

When a Client needs to sell some special purpose properties. Client want us to suggest alternative uses and approximate costs to convert to alternative uses. Client believes current configuration is not salable and would also violate government security issues if sold in current configurations. Consultation requires travel to several States and two U S protectorates. The hiring of sub-contractors for appraisals in each area as to land values and salvage values of steel and concrete. Consultation is made in writing (reviewed) then before a panel of officers.

Cost to renew vs. moving

Should you renew a loan or ask the borrower to move a loan.

This comes from the lenders view point, the costs to renew a loan verses the costs to have a borrower move a loan to another lender (or payoff). It can vary from simple administrative costs to estimating costs of lost deposit balances, potential deed back with claims of equity, etc.

Purchase decision pros and cons

Client come in with three shopping centers that are for sale and they have under contract. They will only close on two of the three. The client wishes us to rank 1, 2 & 3 the properties based on their purchase contracts (assumed to be market value- no separate appraisal called for). We research the individual leases, the separate neighborhoods and market areas and physical conditions and ages of the properties. Meet with client and give our rankings and why. Long term and short term hold periods, etc. Cost around 1.5% of assets contract prices. Time took 2 years (not full time but with part time work and coordination) and cost was a combination of fixed base fee plus cost (10 & 10)

Loan classifications and solutions

Usually a short simple review of a clients loan (borrower or lender) our impressions and what we believe needs to be amended, altered, changed or what is pro and con of a existing agreement.

Client loaned 2,900,000 on a Convenience Store, the Real Estate is worth 1,900,000 and the business, inventory, Furniture, Fixtures and Equipment is worth $1,000,000. Rough estimates by the client lender. We review the previous documents and suggest avenues to cover the lenders debt and not anger the borrower or alert the regulatory authorities to any potential deficiencies (since the loan is still current, etc. and there is no problem at the time of the consultation)

Out Come, for approximately 1.5 to 1% of the loan balance we structured a program of guarantees and asset / collateral valuations that would cover all parties, be paid by the borrower and pass regulatory review.

Lender and borrower mediations

Taking no position and being neutral is a trained or learned skill. This is a true mediation process where we allow both sides a neutral forum to work out a mutually agreeable solution to a loan issue or any business matter.

Leave a Reply