Q&A with Sandra Cawley: What Is Valuation at Ryan?

Thank you for sitting down with us today, Sandra. Please tell us a little about yourself and your role at Ryan.

Happy to be here. My name is Sandra Cawley, and I am Principal and Regional Leader of Ryan’s Valuation practice based in British Columbia. I am an AACI (Accredited Appraiser) and development consultant, and I have been in the industry for nearly 45 years. Currently, I oversee our team of professional appraisers specializing in complex and significant commercial, industrial, and residential assets for lenders, owners, and developers.

We’re here today to learn more about Ryan’s Valuation practice and what it entails. To start, can you explain what valuation is for those that may not be familiar?

Certainly. Valuation refers to the process of determining the monetary worth or value of an asset. It involves various factors to determine how much the entity may be worth in the current market for purposes of investment, sales, mergers, acquisitions, litigation, and financial reporting. Valuations can also be done retrospectively, as in we conduct them based on a certain date in the past and they can be performed “as if complete,” a hypothetical condition for construction financing.

Can you tell us about Ryan’s Valuation practice and why clients come to Ryan for the service?

At Ryan, we really are a one-stop shop for our clients. Interestingly, we find that many clients are unaware that we can support them with services such as valuation and property tax assessment, which is untrue. Property tax reviews and appeals are based upon different valuation principles than a valuation for asset, sale, financing, estate, or other such purposes. Additionally, Ryan has an extensive Property Tax team with a presence in Eastern Canada, Quebec, Ontario, Western Canada, and 41 North American locations.

Our Valuation practice comprises approximately 25 appraisers, all of which focus on the commercial (ICI) real estate world. We also have expertise in real estate tax (GST/HST/QST). It’s important to note that when a client comes to work with our Valuation team, they will not only work with experts within the profession, but a team that has extensive relationships with lenders, brokers, buyers, and sellers in the marketplace that keep Ryan current and at the forefront of deals that are taking place. This is critical especially for complex land transactions. We are on top of our game as it relates to revenue and construction costs to assist developers in their proformas.

At any point in time, we have concurrent, multifaceted work streams taking place on behalf of our clients. We are particularly proud to say that our expertise lends us analytical skills that are unmatched in the industry. This is based on the fact that our experts use a combination of unique and specialized data and knowledge to ensure our clients receive the best solutions for consulting and valuation. When clients come to partner with Ryan, they know they’re working with teams that are following along with and understanding what the market is doing, strategizing based on our data, and developing recommendations based on solid information rather than speculation.

Why would a client need an appraisal? What are they used for?

There are many different reasons for a client to get an appraisal. I noted previously that they can be used for purposes such as investments, acquisitions and sales, mergers and acquisitions, and financial reporting, but there are others as well.

• Lenders require appraisals to refinance an asset.
• Appraisals help lenders calculate loan-to-value and debt-service coverage ratios and how much they can loan on a property.
• They can be used for marketing and listing purposes.
• Appraisals are critical for tax planning purposes (see an article by Ryan’s experts on this topic).
• Having an appraisal is important for estate planning purposes, as well as when an individual has passed away.
• Appraisals can be for machinery and equipment. (We have an expert in Ontario who works in this area.)
• And lastly, appraisals can be used in litigation, either to help negotiate or end a dispute.

If an assessment comes back low for a property for some reason, could it impact a client’s valuation?

No. As noted previously, property tax assessments are based upon very different principals than a valuation for other purposes. Valuation is extremely complex and ties into government policy, meaning it can be impacted by elements such as current tenant lease terms, rezoning policies, community amenity requirements, and more. Working with experts like ours is critical because of our deep understanding and connection to local governments; this helps us stay appraised of potential policy changes and other factors that may impact valuation and assessment.

And what kind of appraisals can Ryan support with?

We support clients with a range of appraisals including financing, construction loans, land loans, rental arbitrations, estate planning or legal work, and retrospective and hypothetical “as-if-complete” valuations. With our knowledge, we can help clients even before they purchase an asset to help them understand market risk.

Thank you. Lastly, what are the next steps for current or potential clients interested in discussing valuation or appraisals?

For those who want to learn more about the services we provide with valuation or discuss appraisals, I encourage you to reach out to me directly. Additionally, if you have other questions about our services, we’d be happy to discuss how we can support you and your business.

Sandra Cawley
Principal, Regional Leader
Ryan
604.331.7304
sandra.cawley@ryan.com