It is extremely important to understand the value of your assets, whether they are single assets, a portfolio, or a fleet of assets across multiple locations. Experienced appraisal experts can conduct on-site inspections and valuations of your assets. Various valuation firms can also provide damage estimates, fair market value, and in-place value appraisals anywhere in the globe. You can have Professional Equipment valuation services.  You do not have to limit your appraisal to one piece of equipment. In addition, you can use a valuation to determine the value of a production line, a complete facility, or the value of multiple facilities. Along with the valuation of machinery and equipment, appraisal services also contribute to the valuation of other assets for different purposes. These purposes may include, but are not limited to the following:

• Financing
• Accounting
• Management Planning
• Liquidation and bankruptcy
• Insurance
• Leasing
• Tax

Equipment valuation services can assist you in determining the fair market value of your equipment. Furthermore, it will aid in estimating the useful life of new and used assets in order to make an informed decision regarding their sale or acquisition. In addition to establishing or verifying the need for insurance, the report identifies the current residual value and economic life of leased assets.

What are the steps for the Machinery and Equipment Valuation?

It is imperative for companies to determine the value of their machinery and equipment when they intend to sell, prepare to sell, buy, or insure machinery. If your company deals with heavy machinery, knowing its value is vital for insurance and tax purpose. The appraisal of your machinery will allow you to determine the real value of your equipment. Indeed, there are several other ways in which an evaluation of industrial equipment assets can assist your company in improving its situation, flexibility and adaptability to market changes. Conducting an equipment valuation requires you to have both the most current and accurate information about the equipment. Here are the steps needed to carry out the machinery and equipment valuation services.

Step 1: Assessment

A professional appraiser first determines: who the client is? What is it that needs to be appraised? What is the purpose of the appraisal, its intended use, and the definition of value?

Step 2: Collection

Once the appraiser has assessed the property, now it’s time to gather data that could be relevant to the valuation. Experts establish and classify each equipment asset and describe each by specific characteristics like serial number, manufacturer, and miles/hours.

Step 3: Approach

An appraiser determines which of the three approaches will be used: the sales/market approach, the cost approach, or the income approach. The appraiser then applies it to the particular valuation based on the selected approach.

Step 4: Valuation

The appraiser develops a market value opinion for the equipment based on the approach chosen.

Step 5: Conclude

The appraiser will compile the appraisal report according to the International Standards of Valuation (ISV) at the end of the process. The client will receive the report as soon as the reconciliation is complete. You can learn a lot about the condition, performance, and value of your machinery by appraising industrial equipment. As a result, your company will be able to leverage its strategic value and condition to maximize its success and growth. It is important to find an appraiser who is certified to appraise machinery within your industry. Having a certificate ensures that the appraiser is fully aware of the proper methods to use in determining the value of your equipment.

Why is asset and equipment valuation important?

It will be necessary to provide information about: quantity, type, vintage, make, model, serial number, usage, capacity, dimensions, material, options, and physical condition of equipment depending on the industry. The equipment appraiser uses these identifiers in many different ways in the appraisal process of the equipment.

• It is necessary to compare the asset list on-site with the data provided by the client to reconcile the data. Most companies do not update the asset records after they are disposed of or replaced. It is helpful to identify these assets to achieve reconciliation. Additionally, physical inspections enable appraisers to observe and report on issues associated with property storage. Some points to consider are, for instance, the storage of the item, the subject and non-subject property, visible maintenance failures, and problems operating or handling the item.
• When it comes to identifying assets, the appraisal process heavily relies on valuation factors. In many cases, the appraiser can verify serial numbers and VINs to verify the subject’s vintage, model, and options to complete the research correctly. It will help in the Sales Comparison Approach.
• When a machinery and equipment valuation service is performed, the equipment identifiers are documented. Furthermore, it assists the client or its agents in distinguishing the subject property from similar properties. Further, it supports identifying non-subject properties during litigation, settlements, disposals, transfers of ownership, leasing, and asset tagging.