What is an Appraisal?
An appraisal is the independent and unbiased process of determining the supportable opinion of value of tangible assets as of a specific date. Appraisals can be performed for a variety of value premises from fair market value in place and in use, to forced liquidation value
How are Machinery and Equipment Appraisals Different from Other Appraisals?
Machinery and equipment appraisals also vary due to intended use of the valuation. For example, the valuation method used for forced liquidation in an insolvency scenario results in a very different value than valuation for replacement cost needed for an insurance loss claim. This also illustrates why it is critical that an equipment appraiser fully understand the intended use of your equipment appraisal.The unique nature and portability of machinery and equipment create a need for many different valuation terms that don’t exist in other appraisal fields such as real estate or gems and jewels. Many of the items we appraise are unique plant processing installations that have no comparable sales.
What Kind of Equipment Appraisal Do I Need?
By thoroughly reviewing your specific situation, we can accurately determine what type of equipment appraisal you need and what you don’t need. You will save money by getting the exact equipment appraisal your situation needs..
How Do I Choose an Equipment Appraiser?
It is important to use an equipment appraiser who has experience in your industry who has evaluated similar equipment over many years.
Value vs Price: What’s the Difference?
The job of an equipment appraisers is to arrive at an unbiased opinion of value. While value is often determined by looking at some form of price data and making adjustments, it is not accurate to assume that the selling price of an item will be the same as the value. Have you ever gotten a deal on a piece of equipment and felt that you paid less than value? Have you ever realized after a transaction that you could have gotten the same item cheaper someplace else? An equipment appraisal will provide an opinion of value that in all likelihood will not match your purchase receipts.
Value of Equipment
The value of used equipment is constantly fluctuating, and is affected by a wide variety of factors, including age, condition, manufacturer, geographical location, competing equipment on the market at a given moment, and other factors Whether you are selling surplus equipment made available by expansion, seeking additional capital for growth, or liquidating a plant.
We will provide you with an informed, fair market value appraisal of your equipment which is based on comparable sales. We have found that appraisals that are performed by firms that are not deeply involved in this industry have consistently undervalued used equipment. Conversely, some equipment brokers who appraise equipment over-value it, in hope of securing an exclusive listing on it from the seller. Auction houses that deal largely in all types of machinery, metal working, textile, automotive plants often under-appraise used plastic equipment. Many auction houses also do not have mailing lists that reach large numbers of likely buyers of plastic equipment, and so when they sell the equipment it frequently does not bring as much as it could. A used extruder or thermoformer, for example, should generally not be sold in the same offering as the associated metal working equipment if the highest recovery is to be realized.
Contact us to discuss your equipment appraisal needs.