Home Case Study: Art Valuations for Corporate Collection Vienna

Art Valuation for Corporate Art Collection Vienna

Valuations are crucial in the contemporary art market due to its volatility and various influencing factors. An artwork’s value can change rapidly based on exhibitions, gallery representation, auction records, and market demand. Accurate valuations help protect investments and ensure fair market prices. A recent assessment saved a client €35,500 by identifying discrepancies in the seller’s pricing, emphasizing the importance of due diligence and professional evaluation in art transactions.

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A corporate entity based in Vienna was considering the acquisition of an Austrian contemporary art collection consisting of 37 objects from another local corporate entity. The collection, featuring works by emerging to mid-career artists and including paintings, works on paper, and small sculptures, was offered at a seemingly reasonable price. To ensure due diligence and secure board approval, the corporation sought a pre-acquisition assessment of the collection to verify its value and authenticity.

The client provided documentation including an inventory and in situ jpeg images of the artworks. The assessment process involved establishing and confirming the provenance of the artworks, tracing their history from the artist’s studio to the current owner. Additionally, a market assessment was conducted to determine an appropriate purchase price.

The majority of the artworks were by well-established and recognized Austrian artists, widely exhibited and collected by several museums. However, some selling prices suggested by the seller were overly ambitious and did not align with the artworks’ market value. While some market values exceeded the seller’s prices, it was advised not to increase the offer but to negotiate terms consistent with the overall current market value of the collection.

The seller valued the collection at €580,000. After the assessment, a recommended purchase price of €544,500 was provided, saving the client €35,500. The discrepancy between buyer and seller valuations was attributed to an outdated valuation or reliance on initial purchase prices adjusted only for CPI, a common mistake in corporate collections.

Collector Advice:

It is recommended for corporate collections to appoint an independent valuer to assess the market value of any works offered for acquisition to ensure accurate purchase prices.

Recommended Service:

Pre-Purchase Report | For further Details please contact us via contact@velvenoir.com 

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