History of Canam
Road map to excellence
Canam was founded in 1986. Since then, we have grown to become a leading provider of auction, appraisal and liquidation services to banks, lenders, financial institutions and private companies. We distinguish ourselves from our competitors by our vast knowledge of every major industrial segment, our attention to detail and our commitment to providing the best customer service in the auction and appraisal industry.
Canam’s head office and 20,000-square-foot indoor storage facility, and its two acres of secure outdoor space, are designed to facilitate large-scale auctions and liquidations. We continue to enhance our services by incorporating the latest in auction technologies and appraisal methods. Our auction marketing campaigns encompass both traditional media and online platforms. Mailing lists and various other social media marketing techniques are just some of the tools which we use to keep our clients up to date and informed.
Canam employs a number of different sales models, from Outright Purchase or Cash Purchase and Net Minimum Guarantees to Straight Commission Sales, depending on the project and the specific requirements of each client. Due in no small part to our extensive pre-sale preparation and marketing efforts, auction revenues often exceed projections.
How is Fair Value is Determined?
Physical deterioration – An appraiser will review the piece of equipment, taking note of its physical condition. The old adage about never judging a book by its cover applies well to machinery appraisals. Even if the piece of equipment looks old and shows visible wear and tear, this is not necessarily an indication of low value. Appraisers will typically review maintenance records and serial numbers before making a value determination. Equipment that was well maintained, or has spare parts on hand in the warehouse, might therefore receive a higher value.
Replacement cost – An appraiser might gauge how much it would cost to purchase equivalent equipment, and then deduct from this cost based on the condition of the used equipment. When equipment is being appraised for insurance or the resale process, equipment values are often calculated in this manner.
Useful life – The appraiser may estimate the useful life of the machinery by reviewing the age, physical condition and depreciation of equipment. By consulting a chart showing the useful life of the particular object, and deducting time for age and wear and tear, an appraiser can calculate how many years of “useful life” a given piece of oil and gas equipment might have remaining.
Market approach – In a market-based approach to equipment valuations, appraisers look at recent sale prices of comparable equipment. While this is considered a highly reliable way to value machinery, the method only works when equipment similar to that in question has been recently sold, is comparable in condition and value, and was sold in a similar manner and location.
Canam’s appraisers will typically employ one or more of these methods to determine the value for a piece of oil field equipment. The appraisal report should list which method was used, explain the criteria under which the fair value was determined, and provide additional photos and evidence used to support these conclusions.
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