Financial Analysis

Acquisition and Divestiture Analyses.  As organizations conduct analyses to determine a bid price, or in some situations, to evaluate alternative bids for property they own, they often want an income approach value.  This amounts to taking future estimates of cash flow and discounting them to the present to get a price per acre.  Future estimates of cash flow may come from a harvest schedule as discussed in Forest Level Planning or they may be obtained otherwise.  The ability to Smarter Forestry to estimate future yields for different management alternatives means that Smarter Forestry is the best organization in the South to conduct these analyses for your organization.  In addition we have been educated in the proper methods of conducting financial analyses.  We have been quantitative and business minded throughout our careers.

In addition to the buy/sell acquisition and divestiture analyses, timberland owners should routinely use financial analysis to estimate potential value added for different treatments.  For example, the decision to use fertilization should be determined by estimating the change in yield by product and thus value versus the cost of the treatment.  The marginal rate of return from the fertilization should exceed alternative uses for the money for fertilization to be chosen as a treatment.  Smarter Forestry specializes in these analyses. 




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