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What Kind of Equipment is Checked Out in a Mining Equipment Appraisal?

Posted by Equipment Appraisal Services on Mon, Jan 20, 2020 @ 08:00 AM

mining equipment valuation

When you're having a mining equipment appraisal performed for the first time, it's not unusual to wonder what kind of equipment will be covered during the process. The short answer is: all of it. There are certain high-level pieces of equipment that should always be covered when you're having your mining company's equipment valued, to ensure that you have proper documentation of that value in case of a cave-in, mudslide or similar event that causes that equipment to be lost. Here's a quick look at major categories of equipment.


What Kind of Equipment is Checked Out in a Mining Equipment Appraisal?

  • Excavators: In the old days, mining was accomplished by pick and shovel, but the advent of machine power has made excavators the equipment of choice to get the job done quickly and efficiently.
  • Draglines: Used by miners to drag dirt away from the surface to reveal minerals beneath the surface, draglines do an exceptional job of quickly removing tons of dirt in a single pass, presenting a mineable surface for excavation.
  • Roof Bolters: To improve safety and reduce the risk of cave-ins during mining operations, roof bolters are used to force bolts into a rock face using hydraulic power. 
  • Longwall Miners: With hydraulic systems that support the mine ceiling during operations, longwall miners remove rectangular sections of minerals, allowing pockets of a mineral to be removed without disturbing as much of the surrounding rock.
  • Continuous Miners: To remove mineral deposits a bit at a time from a large deposit, continuous miners feature large, rotating teeth to get the job done.
  • Rock Dusters: Used to prevent fires, rock dusters spray nonflammable rock dust onto mining faces in coal mining, to prevent the coal from catching fire during mining operations.
  • Shuttle Cars and Scoops: To transport minerals from the mining location to collection points within the mine, shuttle cars provide essential transportation to scoops, which finish removing the minerals from the mine entirely.
  • Haul Trucks: Capable of hauling hundreds of tons of dirt, rock, minerals or other material in a single payload, haul trucks are huge dump trucks, specially designed to carry extreme loads.
  • Highwall Miners: When exposed surfaces from open-pit mining reveal horizontal seams of minerals, highwall miners are used to extract this material to optimize mining efficiency.
  • Bulldozers: Used to push large amounts of material around, bulldozers can be part of loading, clearing and scraping operations to help reveal mineral seams to mining operations.
  • Graders: In open-pit mining, graders help keep the roads into and out of the pit operational to allow heavy equipment to pass and continue operating.
  • Conveyors: When rock is crushed or mineral material needs to be moved around the mining site, conveyors help get the job done quickly and efficiently.

Though this should give you a solid idea of what type of machinery is evaluated during a mining equipment appraisal, it is by no means an exhaustive list. Other items that can be evaluated include transporting vehicles, rock crushers, ventilation systems, laboratory testing machinery and other assets that help keep your mining company operating in the black on a daily basis. However, it's important that you have the appraisal performed by an accredited equipment appraiser, so you can ensure that you're getting unbiased calculations from an independent third party who has no personal stake in the outcome of the appraisal.

Tags: Mining Equipment Valuation

What Kind of Personal Property is Covered in a Corporate Office FF&E Appraisal?

Posted by Equipment Appraisal Services on Mon, Jan 06, 2020 @ 08:00 AM

Corp office FF&E

When you have an office with a lot of furnishings, equipment and other items, those possessions have value, a value that is often overlooked in accounting and business appraisal. Corporate office FF&E appraisal looks at the value of your business' furnishings, fixtures and equipment, so that you have a better picture of what those assets are really worth for your business. Here's a look at the different kinds of personal property are valued during this type of equipment appraisal.


What Kind of Personal Property is Covered in a Corporate Office FF&E Appraisal?

  • Furniture. From your lobby sofas to your break room tables and all of the desks, chairs, credenzas, filing cabinets, bookcases and other furniture in between, your office furniture is a big investment in your office's functionality. Because it's important to recognize the difference in value between commercial and residential furniture, an appraisal helps protect that value.
  • Furnishings. Beyond your furniture, the other items you have in your office to give it some character and personality can be a big investment. From the customized artwork in the lobby to the fountain that brings tranquility to your breakroom, these items have significant value that needs to be defined, characterized and documented against any future loss, such as a fire, flood or other disasters.
  • Fixtures. Do you have display cases? Brochure racks? Other items that help to showcase your business and everything it represents? These fixtures are often developed at significant costs to help promote your business, costs that should be protected. By documenting what these fixtures are worth, you can more easily determine reasonable costs for replacement down the road.
  • Computers. What is the value of your office computers? Between the time that you purchase your office's computer equipment and the point that you retire it, how much has it changed? Having the current value of this equipment makes it easier to replace in any number of situations, whether it's a power surge, lost laptops during travel or that cup of coffee that wasn't quite far enough away from the keyboard.
  • Other IT Equipment. What other machinery do you have in your office that keeps your IT assets running? Routers, hubs, printers, scanners: whatever IT equipment you have in your office, being able to prove the value of that equipment is important to your bottom line, especially given its often high market cost.
  • Specialty Equipment. What other specialty equipment do you have in your office? A Keurig in the break room? Kitchen equipment in the cafeteria? Video games in the break room? Whatever other equipment you have in your office that isn't otherwise covered can be looked at under this type of assessment.

By having a corporate office FF&E appraisal performed on the personal property in your office, you can have a much better idea of what those items are actually worth, making it easier to leverage that value for your company's growth, make smarter sell or no-sell decisions, fight a bad tax assessment or get the items replaced during an insurance claim. However, it's vital that you have the appraisal performed the right way, using an accredited equipment appraiser. Because they don't have a vested interest in the outcome of the appraisal, they'll provide you with the most accurate, unbiased valuation based on tested methodologies that have stood the test of time. 

Tags: Corporate Office FF&E Valuation

What Happens in a Private Medical Facility Equipment Appraisal?

Posted by Equipment Appraisal Services on Mon, Dec 23, 2019 @ 08:00 AM

private medical facility equipment appraisal

When you've kept your medical facility off of the market and it's privately held, what happens when you need to make changes or decisions about the business that are dependent on its value? A private medical facility equipment appraisal can help you determine exactly what you have and what it's worth, giving you the information you need to make smart decisions for your facility. Whether you run a nursing home, hospital, physical therapy center or similar facility, knowing what happens during the equipment appraisal process can help you through the process.

What Happens in a Private Medical Facility Equipment Appraisal?

Though medical equipment does have its own markets for resale and value, these markets are somewhat limited and may be strongly influenced based on location, new medical discoveries and new treatments. These create challenges to the market that are unique, because most other industries don't follow these same types of trends when determining the value of machinery. But whether it's an MRI, exam table, heart monitor or other durable medical equipment, the equipment should be considered when you're undertaking important decisions for your medical facility. Why? Because that value impacts the decisions you're making by providing you with a solid financial picture of your facility.

But why should you have an equipment appraisal performed on your private medical facility's equipment? As equipment ages, it loses value, which is why it's value is depreciated on tax tables for accounting purposes. However, the value from the table isn't necessarily the end value of the equipment. We've all had pieces of machinery that were completely depreciated within a few years, but continued to provide solid service for many years beyond that point. That equipment has value and should be included in the estimated value of your private medical facility's assets. It can be used to secure loans, provide an accurate view of your medical facility's financial health, as a negotiating point for the sale of the facility and many other purposes. The best way to determine that value is through an equipment appraisal from an accredited appraisal specialist. 

During the equipment appraisal process, the appraiser will take a look at the value of comparable machinery, preferably the same model from the same manufacturer. This value will then be adjusted, using a tested methodology that has been tested in a wide range of legal, insurance, tax and financial circles. These adjustments are based on the equipment's overall condition, whether it has signs of abuse, if it appears to be fully functional, demand for the equipment in the market and other factors that may come into play in the process. The information is condensed into an appraisal report.

Your equipment is a large part of your facility's assets, and knowing its value is vital to ensuring that you'll be able to leverage those assets when you need them. Having the information from your valuation report available makes it easier to decide when equipment should be replaced, when it should be leveraged for collateral to grow your business or other important decisions for your asset recovery strategy. However, it's important to work with an independent, accredited equipment appraisal specialist in these situations, because as an independent third party, the appraiser will have no interest in working in favor of a supplier, manufacturer or other sales-based organization.

Tags: Medical Facility Equipment Valuation

How is a Golf Course Country Club Asset Appraisal Carried Out?

Posted by Equipment Appraisal Services on Mon, Dec 09, 2019 @ 08:00 AM

Golf Course Country Club FF&E Valuation

When you own or operate a golf course, country club or similar facility, keeping your customers and members happy is a vital part of the success of your business. But when it comes time to update your facility, take advantage of a local land sale for expansion or undertake new construction, do you really know what your business is worth? Older equipment may have been fully depreciated, but is still a vital part of regular operations. A large part of your overall assets can be tied up in a range of different types of equipment, and knowing what that machinery is worth gives you a strong advantage when you're considering a bank loan, need to deal with insurance to replace equipment lost in a fire or have to work through a court case. Here's a quick look at the types of equipment that are common to this type of facility and what's involved in golf course country club asset appraisal.


How is a Golf Course Country Club Asset Appraisal Carried Out?

Green and Facility Maintenance Equipment

Tractors, mowers, aerators, sprayers: your golf course or country club has a lot of capital tied up in your green maintenance equipment. Because much of this equipment is similar to that used in agriculture, it will have a similar value to that type of machinery. However, some of your machinery provides a much finer finish than simple farming equipment, and that needs to be taken into account. You also have floor cleaners, power tools and other equipment used to maintain your facility. Your equipment's age, usage and condition will all be considered when your equipment is appraised, as well as any kits or options that you've invested in to keep your greens looking their very best.

Training and Rental Equipment

Do you have golf carts available for rent? Computer-aided training systems that your pro shop uses to help members and customers up their game? These types of equipment that are used by customers to build value in your country club or golf course can get expensive, and knowing what they're really worth can help ensure the accuracy of your accounting books. This machinery will be evaluated based on its specific brand and model, the condition that it's in, market demand for that equipment and similar information.

Hospitality Equipment

What about catering and facility rentals for special events, such as weddings, reunions, conferences or similar events? If you have a commercial kitchen, multi-media equipment or other entertainment machinery, it's part of your overall bottom line and needs to be considered when you're having an equipment appraisal performed. The equipment will be evaluated in terms of manufacturer, model, condition, expected useable lifespan remaining, market demand for that machinery and similar details to help calculate its estimated value.

By having a general idea of what your equipment is worth through a golf course country club asset appraisal, you'll be in a much better position to work through a range of different situations, including appealing an inaccurate tax assessment, securing financing, working with insurance adjustors and fighting a court case. However, it's best to work with an accredited equipment appraiser who can provide you with an independent evaluation of your machinery's value. This way, you know that they're not putting their own interests first.

Tags: Golf Course Country Club FF&E Appraisal

5 Reasons Why You Need a Plant Process Asset Appraisal

Posted by Equipment Appraisal Services on Mon, Nov 25, 2019 @ 08:00 AM

plant processing

Your business is manufacturing, and you take pride in knowing how much productivity you get out of your production line every minute, hour or day. But do you have the same intimate level of knowledge about the value of your manufacturing plant equipment? Plant process asset appraisal is the process of determining the value of your manufacturing equipment, either in individual pieces or as a whole. Here's a quick look at some of the important reasons why you should have your production line appraised.


5 Reasons Why You Need a Plant Process Asset Appraisal

  1. Some equipment is appraised together with the rest of a production line. When another business is interested in purchasing an entire production line, being able to purchase that entire line without having to find the missing pieces has value. Instead of having to find additional equipment, they can purchase everything at once, which is worth a premium. An appraiser knows how grouping that equipment can raise its overall value to a potential purchaser.
  2. Some equipment is appraised separately from the rest of your assets. Sure, your welding robots and their infrastructure and framework all need to go together when they're sold, but what about the computer that runs them? It can be hard trying to determine which parts of your production line need to be appraised separately. A qualified equipment appraiser knows when to separate equipment for appraisal and when they should be left together.
  3. You don't need delays when you have to file an insurance claim. Even if you don't know what your equipment is worth exactly, you know how much it costs your business every minute that production line is still. When you have an equipment failure and need to file a claim, you want it resolved quickly so that you can replace that equipment and get on with your business life. An equipment appraisal speeds up the process by providing proof of value to your insurance carrier.
  4. You need to grow your business but your business credit isn't that great. If you need to secure financing for a great opportunity or expand your production line, one option is to offer your production line as collateral for the loan. When you have an equipment appraisal performed by an accredited appraiser, that information holds up well to strong scrutiny, even in tough financial circles. 
  5. The equipment may not be valued properly in your accounting books. Many businesses simply depreciate equipment based on government tax forms. However, even once that equipment has been fully depreciated, it may still remain productive, delivering income to your business. It would cost a lot to replace that machinery. An equipment appraisal tells you exactly what the equipment is really worth to your business.

A plant process asset appraisal can help you get a grip on exactly what your production line machinery is worth while serving as a solid proof of value for legal, insurance, tax and financial purposes. However, having the appraisal performed by an equipment dealer means that the figures may be skewed based on their interests. When you work with an independent accredited equipment appraiser, you have the peace of mind of knowing that they have no interest in the outcome of the valuation report that they prepare and that you can trust their calculations.

Tags: Plant Process Appraisal

What Are Some Common Points in All Kinds of Crane Valuation?

Posted by Equipment Appraisal Services on Mon, Nov 11, 2019 @ 08:00 AM

Valuation of Cranes

Crane valuation can seem like a complicated process, especially when there are a range of different types of cranes being considered. However, there are also a certain amount of common areas between all types of cranes. How does the condition of these different areas impact the overall value of the crane? Here's a quick look at common points in crane appraisal, regardless of the type of crane that is involved.

What Are Some Common Points in All Kinds of Crane Valuation?

  • Types of Cranes Appraised: What kind of crane is being valued? There are a wide range of different crane types, which often have very different values. Maybe you need a telescoping crane valued that is used for transporting materials to areas of different heights. A crawler crane used to navigate poor soil conditions may have very different appraisal points than a tower crane used to lift materials up to the top of a skyscraper. Knowing what type of crane is involved helps the appraiser move on to the next steps.
  • Hydraulics and Mechanical Systems: As the heart of any crane, poorly-functioning hydraulics or mechanical systems can lead to early failure or reduce the expected useful lifespan of the equipment. The appraiser will take a solid look at the functionality of the equipment, possibly taking into account fluids tests, stress tests and video to determine whether everything is functioning as it should be.
  • History of Repairs and Maintenance: Time to dig out your maintenance and repair logs! By looking over this paperwork, the valuation specialist can get a good picture of whether the equipment has been properly maintained and whether it was immediately taken out of service when a problem was noted or if it continued in use, which may impact its expected remaining useful lifespan, which in turn will impact its value.
  • Manufacturer and Model: Just like cars, some manufacturers and specific models will have a reputation for longevity and durability, while others do not. This information will be taken into account by the equipment appraiser during the valuation process as they consider how well that manufacturer and model have held up in the field in the past. As you may expect, equipment that performs well for a longer length of time has a much better value than equipment that performs poorly or fails early.
  • Additional Kits or Options: If you've upgraded your equipment after you purchased it or paid more for specific options, your equipment valuation specialist will take that additional value and functionality into account when the crane is being valued. This can include an upgraded radiator kit to improve cooling, a stronger hydraulic system for a boom or any number of other options that may have been improved during or after purchase.

By having a better idea of how crane valuation is approached regardless of the type of crane involved, you can make a better judgment call when purchasing your next crane. But what if you need to know the value of a crane that you currently own or are considering purchasing or selling? If you're making this type of investment in your business, it's important to have an equipment appraisal performed by an accredited valuation specialist. Working with an accredited appraiser ensures that your interests are protected during the process.

Tags: Crane Appraisals

Exactly What's Involved in an Earth Moving Equipment Appraisal?

Posted by Equipment Appraisal Services on Mon, Oct 28, 2019 @ 08:00 AM

earth moving equipment

Whatever portion of the construction industry you're in, heavy equipment is quite possibly a big part of your daily life. Because this machinery can cost a pretty penny, it's important to know how to leverage those assets to your company's best benefit. But how do you know exactly what those machines are worth? Though they may be fully depreciated on your books because of the way business taxes work, they still have value. The best way to learn what your machinery is worth is through an earth moving equipment appraisal. Here's a look at how this type of equipment valuation works.


Exactly What's Involved in an Earth Moving Equipment Appraisal?

You probably have an idea of what your equipment was worth when you first purchased it, and you may have a rough idea of what you can sell it for used at end of life. But in the middle, between these two extremes, there is an entire range of possible values that will need to be carefully calculated. This is best handled by an accredited appraiser who can act as an independent third party, rather than working with an equipment dealer who may have their own interests in the process.

First, the appraiser will find out the basic information about your equipment, including the manufacturer and the model. This is because much like automobiles, different equipment will have a different expectation for total useful lifespan. If you have two pieces of equipment side-by-side, one may only expect to be useful for 5,000 hours while the other is expected to be useful for 10,000 hours. If they were both metered at 5,000 hours and were otherwise comparable, which one would you pay more for? That's the difference in value.

The appraiser will ask if there are any specific options or kits that were added to the machinery, as that will often increase the overall value due to the improved functionality, protection or other benefits it delivers to the equipment. Much like the similar equipment above, would you rather purchase a piece of equipment that has an upgraded radiator to help prevent engine overheating or a standard model? You'd prefer the upgraded equipment, of course, all other things being equal.

After this information is gathered, the appraiser will start a careful inspection of the equipment. Certain signs will be fairly apparent to them if something isn't quite right with the machinery, such as excessive control wear on a low-hours backhoe, dents and scratches on a forklift and new panels that have replaced old ones on a front end loader. These type of signs often show that the equipment may have been abused, which in turn will often shorten its useful lifespan. The appraiser will also go through your maintenance and repair logs to check that the equipment has been maintained regularly, which lengthens its overall useful lifespan.

By taking the time to have an earth moving equipment appraisal performed on your company's heavy machinery, you can discover exactly what these high-dollar assets are worth. This can make it much easier to decide when to update your equipment, how to handle a dealer who is undervaluing your machinery and many other benefits. The appraisal report will also serve as proof of value for insurance, tax, financial and legal circles, providing you with solid documentation of your company's assets.

Tags: Earth Moving Equipment Appraisal

How to Use Merger & Acquisition Fixed Asset Appraisal for Equipment in Your Business

Posted by Equipment Appraisal Services on Mon, Oct 14, 2019 @ 08:00 AM

Mergers & Acquisitions

When you're getting ready to add another company to your umbrella or become part of a larger organization, it can seem as though there are a million tiny details to track and complete before the process can move forward. Though some of these may be options, one vital task that must take place before final negotiations is a merger & acquisition fixed asset appraisal. This process allows you to determine the value of your business' equipment before you enter into the final agreement. Because many types of machinery don't have their real value properly reflected in your accounting books, it's of vital importance that you have these items appraised. Here's more information on how to use this type of appraisal during the process.


How to Use Merger & Acquisition Fixed Asset Appraisal for Equipment in Your Business

Let's start for a minute by talking about how most business owners look at the value of their equipment. To start, they'll look at the accounting books. if a piece of equipment has lasted significantly longer than was expected, it may have a higher value than is shown on the books, such as a truck that has been depreciated over five years, but is still running after ten. The books do not show a value for five years, yet the truck continues to produce value for the company, and lowers the business' liabilities because it hasn't been replaced with another truck that would require a loan to be taken out. The book value is zero, so how do you determine the value of that truck? Do you look at classified ads, see what is offered by the local dealership or just take a guess at what the value is? Any of these methods can be flawed, driven by market conditions that may not favor your vehicle.

The best way to ascertain this value is through an independent asset appraisal, which tells you what the equipment is worth in the moment. This allows you to approach a merger or acquisition negotiation with a solid idea of what that equipment is worth. The appraisal report gives you a position of power from you can negotiate, allowing you to work towards a better offer for your company by establishing which company - the merger or the acquisition - has the stronger or weaker position. With this knowledge in hand, it is much easier to negotiate the best possible deal for your business, whether that has to do with retaining key employees, getting a larger profit share or similar aspects that may be very desirable for both sides. Entering into a negotiation without this information is much like going to a used car lot and expecting that you'll come out on top with no work on your part.

By taking the time to have a merger & acquisition fixed asset appraisal performed on your business' equipment before you get into negotiations, you'll have a much better idea of what these assets are actually worth in today's market. However, it's very important that you only work with a certified equipment appraisal specialist who has experience in your industry. By doing so, you can ensure that you're receiving an independent third-party opinion on your equipment's value, rather than a value that is influenced by the possibility of a sale or similar factor.

Tags: Appraisals for Mergers & Acquisitions

Versatile Options: How Shipping Container Valuation Helps You Get What It's Worth

Posted by Equipment Appraisal Services on Mon, Sep 30, 2019 @ 08:00 AM

Shipping Container Appraisal

In today's world, everything is being recycled one way or another, even shipping containers. Used to move products from national and international locations, they're often left sitting empty - until recently. If you're considering selling shipping containers for some of their many uses, you could be looking at starting a lucrative side hustle for your business or a new business entirely. But how do you know how much you should charge for those containers, and how do you back up their value? Three words: shipping container valuation. Keep reading to learn more uses for shipping containers to help sell these useful containers.


Versatile Options: How Shipping Container Valuation Helps You Get What It's Worth

  1. Shipping, of course! If your company is regularly moving large quantities of products or materials, you can reuse shipping containers that are in good condition to continue shipping those items.
  2. Workshop space. Need to expand operations quickly or add a hobby shop in the backyard? Shipping containers give you a great way to quickly get a structure in place that you can then wire for use as a shop, whether it's for home or business use.
  3. Storage. If conditions are right in your market for buying supplies and materials, do you have a weathertight place to store them? Shipping containers are meant to keep your items protected from the elements, making them an inexpensive way to store excess material.
  4. Housing. With the modern look coming into vogue again, homes that are created from multiple shipping containers are becoming popular. Several shipping containers are joined together with shared entryways, even stacked to create multiple floors, then finished inside.
  5. Swimming pools. Shipping containers are great for creating instant pools, requiring only the addition of a liner and filtration system to work very effectively. Lower-quality containers can be used for in-ground setups.
  6. Underground shelters. Because shipping containers are designed to be tough and hold a lot of weight, they can make great tornado or storm shelters. This allows you to simply dig a hole for the container, add stairs and ventilation and then finish it out.
  7. Studios. If you need to quickly add an art studio to your home or business, a storage container can be quickly put into place with windows cut into place, electricity added and lighting to your own specifications.
  8. Semi-portable shops and cafes. If you want to set up a barbeque stand for the summer, art stand for the tourist season or any number of other retail or food uses, storage containers make a great option.

Though you can give your customers any number of ideas for your shipping containers, how do you get what they're worth? Shipping container valuation looks at a wide range of different factors that can impact your shipping containers' values, then calculates what those values are. This information is then summarized in a valuation report, which you can use to back up your asking price. This allows you to offer lower prices for shipping containers that have seen more wear and tear or higher prices for containers that are in premium condition. You'll also be able to recommend different uses based on that condition. Make sure you're working with a certified equipment appraiser to ensure that the calculated value you receive is accurate.

Tags: Shipping Container Appraisal

What's Covered in a Restaurant Personal Property & Equipment Appraisal?

Posted by Equipment Appraisal Services on Mon, Sep 16, 2019 @ 08:00 AM

restaurant FF&E valuation

You love to cook and host people at your restaurant, but sometimes the business end of your space can be frustrating. Even if you're handling your own accounting, do you know what it would cost to replace all of the items in your restaurant? Do you have sufficient insurance coverage if you have a kitchen fire or flood? One way to determine whether you are able to replace any or all of your restaurant's property and equipment is by having a restaurant personal property & equipment appraisal performed. Here's a look at what kind of items will be appraised during the process.


What's Covered in a Restaurant Personal Property & Equipment Appraisal?

Your restaurant has a lot of different types of property, property that can suffer losses in a number of different circumstances. Flooding can damage your tables and chairs. A fire can damage or destroy the equipment in your kitchen. Either of these circumstances can impact your real estate values, if you've chosen to purchase your business property rather than leasing it. You may have insurance to cover these losses, but how do you know how much insurance to carry in the first place to cover these different types of property?

You could start by looking at replacement value. How much will it cost to replace the equipment that's in your restaurant's kitchen? How much will it cost to try to source and replace the hand-carved chairs in your dining room? Will you need to purchase new items, or can you easily find the items you need second-hand to help reduce the cost of replacement? How do you know what these values are in the first place? The easiest approach is to have an appraisal performed on your restaurant's equipment and personal property.

When you have these items appraised, you can get a better idea of how much insurance coverage you may have. On some pieces of equipment, you may have already fully depreciated the equipment to follow a particular tax strategy, but that equipment will continue to deliver value for your restaurant for many years to come. Because you don't have to replace that equipment, it continues to have value for your business. If you were to suffer a loss due to flooding, fire or another occurrence, you would then need to pay money to replace the equipment. As you can see, basing the value of your restaurant's equipment and personal property on your tax accounting records can leave you far short of the claim you would need to file with your insurance company in case of a loss.

By having a restaurant personal property & equipment appraisal performed on your business' material goods, you can ensure that you have sufficient insurance coverage in case of a disaster. You can also use the appraisal to leverage the value of your restaurant's equipment and personal property to help secure financing, fight a property tax assessment that is incorrect or proves the value of your restaurant in court proceedings. However, to get accurate calculations, you'll want to make sure that you're working with a certified equipment appraiser. The certification process ensures that your appraiser has had training in standardized methodologies that will hold up well to strong scrutiny.

Tags: Restaurant FF&E Valuation