Equipment Appraisal Blog | Understanding Machinery Appraisals

Exactly what happens during an aircraft appraisal?

Posted by Equipment Appraisal Services on Mon, Jul 22, 2019 @ 08:00 AM

aircraft appraisals

When it comes to machinery valuation, there are a number of aspects that set aircraft appraisal apart from other types of equipment appraisal. These differences can make a serious difference in how your aircraft equipment is valued, so it's important to have a decent grasp of what happens during the process. This allows you to use the appraisal to ensure that you can leverage the value of your equipment for a wide range of purposes, such as expansion, upgrades and sales. Here's a quick look at what happens during the appraisal process to help you know what to expect.

Exactly what happens during an aircraft appraisal?

To start, as with many pieces of equipment, the appraiser will look at the number of hours the aircraft has been used. This provides them with a baseline of information of what to expect as far as wear and tear on the engines, the time until the next overhaul and similar aspects. However, unlike other equipment, they'll also look at the number of takeoffs and landings that the aircraft has undertaken. Why? This involves the wear and tear on the aircraft's structure, as this portion of the operation cycle can take a toll on the structure itself. Generally speaking, when comparing two aircraft that are similar in hours, the aircraft that has had a recent engine overhaul and fewer takeoffs and landings will have a greater value than one that is approaching an engine overhaul and numerous takeoffs and landings.

The appraiser will also look at how well the aircraft has been maintained over time and the demand for both aircraft in general and that model in particular in the market. If demand for jets are up and you have a turboprop, that may decrease the value of your aircraft, but if it's a good model that has a constant demand, it may mitigate the depression in the market, allowing you to realize a better asking price compared to similar turboprops of different models. This allows you to maximize your equipment value without having to follow every minor shift in the market, making it easier for you to focus on doing your job.

An appraiser considers a wide range of aspects of your aircraft that you may not have even considered. Has your aircraft had a custom paint job or interior design to match your brand or style that will need to be redone to suit another client? Does it have features, such as a medical bay, which works well for your company's use but will have to be removed or renovated for a commuter company? What about the condition of the landing gear, cockpit or fuselage? These different features of your aircraft may benefit your company's marketing, purpose and bottom line, but may not benefit a future owner, aspects that must be taken into consideration by an equipment appraisal specialist.

By having a good grasp of what happens generally during an aircraft appraisal, you'll be able to leverage the value of your equipment for business growth, upgrades to your aircraft or to make an effective sale. If you don't understand the process, you'll have a harder time understanding whether the appraiser you're working with is providing you with the information you need. However, the easiest way to ensure you'll get the results you need is by working with a certified equipment appraisal specialist.

Tags: Aircraft Valuation

What exactly is involved in Marine Vessel Valuation?

Posted by Equipment Appraisal Services on Mon, Jul 08, 2019 @ 08:00 AM

Marine Vessel Valuation

When your business is on the water, knowing the value of your assets is a vital part of understanding your company's bottom line. But understanding the process of marine vessel valuation can seem like a much more complicated process. However, when you're working with an experienced certified equipment appraiser, the process is much more seamless. Here's a quick look into how the valuation of marine vessels works, whether you're looking at barges, ships, tow boats or any other type of marine vessel.

What exactly is involved in Marine Vessel Valuation?

A few decades ago, the value of a marine vessel was simple to determine - it was what you could get for it on the open market. But today's connected world has opened up new options, and with those options have come new ways to calculate the overall value of your marine vessels in a wide range of specific circumstances. This allows you a greater level of flexibility in determining what your marine vessel is worth based on your needs.

To start, a certified equipment appraiser will take a solid look at your marine vessel, in terms of the manufacturer, model and condition. If it is in good shape, it will be expected to last much longer than a similar vessel that has been abused or poorly maintained, and that superior condition is reflected in a higher overall value. The manufacturer's reputation and the performance and popularity of that specific model will also come into play, with better reputation, performance and popularity driving a higher overall value.

The next aspect of the vessel's value that will fall under consideration is the reason for valuing the equipment. If the vessel must be sold quickly to pay for other business debts, it's not unexpected that the vessel will sell for a lower value than if the vessel is sold to the right buyer at the right time or held onto while being used as collateral for a business loan. There are some circumstances where the vessel's value must be determined in a specific way, typically when it's being used as proof of value in a court of law.

The third aspect of determining the value of marine vessels is the market conditions. As an example, when trade is booming, cargo ships hold a much higher value than when the economy is poor and the vessels are not as strongly in demand for trade. However, just because trade is poor in one part of the world where you typically do business doesn't mean that you need to settle for a low price. A good equipment appraiser will take these factors into account and determine if there are other areas where your marine vessels would command a higher value, allowing you to capitalize on good trade in other areas.

By having a better understanding of how marine vessel valuation works, you'll have a better idea of what to expect when you're ready to have your marine vessel assets appraised. This allows you to ensure that your business books are accurate and up to date, so that you can leverage the value of those assets to grow your business into a promising new future. However, make sure that you're working with a certified equipment appraiser to ensure that the figures and calculations are accurate and can hold up well in a wide range of situations well into the future.

Tags: Marine Vessel Valuation