Equipment Appraisal Blog | Understanding Machinery Appraisals

Ring in the New Year Well Prepared For The Challenges Ahead

Posted by Equipment Appraisal Services on Mon, Dec 26, 2022 @ 07:30 AM


Machinery Equipment Appraisals Small Business

The holiday season is usually a relaxing and joyous time for families and friends while providing an opportunity to take a much-needed break from the year-long toil of work and personal responsibilities. As a small business owner, the time off associated with the holidays may be limited, given the need to stay on top of a never-ending to-do list, close the books on the prior year, and plan ahead for another set of challenges as you turn the calendar page to January.

If your business involves running a lot of machinery & equipment, it might make sense to review annual usage and maintenance for your assets and compare with previous periods as well as what was budgeted for the year. Possibly consider making some reinvestments in your older machines or upgrading those that might have new options available, such as computer controls or more efficient process components.

Are you planning to grow the business or make any major internal investments? Consider an accredited equipment appraisal to allow you to leverage the equity available and obtain much-needed capital to get these projects off the ground.

Perhaps you are thinking about bringing in new investors, buying out existing partners, or even considering selling all or a portion of your business. Begin to look at key consultants who can assist in the efforts and provide an independent, unbiased, assessment of the company’s value, and its underlying assets.

Meet with your key employees to bounce ideas off one another based on their own experiences and perspectives, so you can obtain a well-rounded, thoughtful set of suggestions that might make sense to consider in the immediate future.

Every year brings a mix of both excitement and trepidation for most small business owners as they continue to work hard every day to make the most out of their niche in the marketplace and create additional value-added that can separate them from the competition. The earlier you begin to think about and ultimately implement your plans, the better chance you will have of a successful and desirable outcome.

Tags: Machinery & Equipment Appraisals, small business

Equipment Appraisers Collaborating With Collateral Inspection Firms

Posted by Equipment Appraisal Services on Mon, Dec 12, 2022 @ 07:30 AM

Machinery Equipment Appraisals On-Site Inspection

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There are times when a machinery & equipment appraiser needs to include a visual site visit inspection as part of their valuation assignment however, due to scheduling, location, or cost concerns, cannot complete the fieldwork themselves. When this occurs, it is imperative that an alternative game plan be developed to ensure the inspections are completed in a timely and professional manner while still obtaining the critical information an inspection normally produces.

One option is to engage with a collateral inspection company whose primary job description is physical asset verification. There are a handful of these types of firms in the marketplace, and most have a significant number of employees and contractors spread across the country that enables most inspections to be handled locally.

Ordering the inspection is a fairly straightforward process that can often be done by completing digital forms found on its website. These will provide them with the type of equipment, location, contact, and timing information. If necessary, you can add specific detailed instructions to the work order and directly engage with the local contacts if this level of management is required. You can track the progress of the scheduling and once the job is completed, you will receive a report that includes a number of photographs to go along with the asset verification report. Utilizing this type of equipment inspection service is typically cost-effective and efficient, and can be expedited in just a couple of days for an additional fee if preferred.

From the appraiser’s perspective, it is important to know when this service makes sense and when it might not be the best solution. Collateral inspection companies are not appraisers, nor do they usually have the expertise required to create a detailed asset listing from scratch in cases where the equipment detail you receive in advance is incomplete or non-existent. There will always be situations where you, as the accredited, experienced appraiser, will need to go out yourself and gather the detail necessary to properly identify and describe the assets to complete a credible valuation.

The quality and quantity of the data an appraiser receives at the beginning of an assignment will generally dictate if an on-site visit is required and, if so, whether a collateral inspection firm would be a good fit to assist with the fieldwork. Every valuation project is unique and it is the responsibility of the appraiser to understand how best to tackle the scope of work and deliver a reliable report.

Tags: Machinery & Equipment Appraisals, on-site appraisal, inspection, collateral