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What Equipment is Covered in an Alternative Energy Asset Valuation?

Posted by Equipment Appraisal Services on Mon, Mar 23, 2020 @ 08:00 AM

Solar panel

Whether you've made a switch to reduce your monthly energy bills, need to have off-grid power in case of an emergency or are invested in getting more alternative energy into the world, do you know what the value of that equipment is worth? An alternative energy asset valuation helps you stay on top of your equipment values, but what kind of equipment is covered during the process? Here's a quick overview to help you get started.

What Equipment is Covered in an Alternative Energy Asset Valuation?

  • Solar PV Panels: Photovoltaic (PV) panels are an interesting accounting conundrum, because of their extremely long lifespan. Rated to last 50 years or more, PV panels are often completely written off the books in terms of value within a matter of years, because of how tax agency depreciation works. However, that doesn't mean that the PV panels no longer have any value! Having these panels appraised provides you with a solid idea of what they're worth, even a decade or three after they've been installed.
  • Wind Turbines: Unlike PV panels, wind turbines have mechanical systems that can wear out over time. Depending on the amount of use they receive, how much of a beating they take from storms and the overall quality of materials and design, they may still last for a very long time and should be appraised to determine both their expected remaining useful lifespan and their value. This will help you decide at what point these machines should be replaced.
  • Hydroelectric Turbines: Unlike wind, hydroelectric turbines typically operate under a steady amount of production, with no sudden increases or decreases in terms of flow, productivity and load. This makes this type of equipment last a very long time, with some Scottish hydroelectric turbines being over a century old! For that reason, much like PV panels, it's important to have their value determined, as they'll continue to have value long after they've been fully depreciated.
  • Generators: Though the other assets we've discussed have been renewable energy, generators are not. When you need to have constant electrical service, such as at a medical facility, secure location or similar situation, a backup generator is commonly used to provide the additional power. They may also be installed to provide a backup for renewable energy systems during times of poor energy production. Generators will age and wear, so having an equipment appraisal performed ensures you know their condition and current value.
  • Transformers, Chargers and Similar Equipment: Unlike standard line power, alternative energy systems have a wide range of additional equipment to operate successfully. This can include voltage transformers to step power up or down, inverters that change the system's direct-current power to alternating-current 120V or 240V standard single-phase power, chargers for battery banks and a range of other necessary equipment.

Having an alternative energy asset valuation performed on your equipment makes it much easier to deal with insurance claims, incorrect tax assessments and a range of other potential situations you may face. However, it's important to make sure that you're getting a valuation from an independent accredited equipment valuation specialist who has no interest in the outcome of the appraisal, as that will ensure that you're receiving an accurate estimate of value for your alternative energy assets.

Tags: Alternative Energy Asset Appraisal

What's Involved in Valuing Medical Lab Diagnostic Testing Equipment?

Posted by Equipment Appraisal Services on Mon, Mar 16, 2020 @ 08:00 AM

Side view of busy group of researchers working on experiments in the laboratory

Whether your business specializes in medical testing or simply has diagnostic equipment as a part of your overall operation, the value of those assets can make up a large portion of your balance sheet. At the same time, it's not uncommon to quickly depreciate the value of that machinery using tax tables, which reduces the value of that equipment on paper. What is the equipment actually worth? A medical lab diagnostic testing equipment appraisal can give you important insights into the value of your diagnostic equipment.

What's Involved in Valuing Medical Lab Diagnostic Testing Equipment?

But how does the valuation process work when it comes to diagnostic equipment? To start, your equipment appraiser will need to know some basic information. They'll need to know the manufacturer and model number of each piece of equipment you'd like to have appraised. They'll need to know if you've had any options or kits added to it, or other work that would modify the equipment, such as adding a heavier-duty table to your MRI to handle obese patients. They'll want to know how often the machinery has been used and how much wear and tear it's received over the years due to poor usage practices. The appraiser will need to see any maintenance and repair records for the equipment to ensure that it's being cared for properly and that any problems are being addressed quickly, before any other damage can occur.

Once this has been done, they'll take the information that they've collected and compare it against a number of different information sources. They'll take a look at what that specific piece of equipment has been sold for recently on the open market. The appraiser will make adjustments to account for your equipment's condition and the remaining expected useful lifespan. They may even take a look at your industry as a whole and determine whether that specific equipment is still in demand or if it's giving way to better technology.

After this information is gathered, the equipment appraiser will calculate the equipment's value using a number of methodologies that have been tested in a range of professional circles, including insurance, tax, financial and legal circumstances. This value looks at the equipment's original value, any amendments that have been made to it that may increase or decrease value, its expected remaining useful lifespan, demand for that piece of equipment on the open market, any damage or unrepaired issues that are still outstanding that will negatively impact the equipment's value and similar issues. This information, along with the final value calculation, is assembled into a professional report.

By having an appraisal performed on your medical lab diagnostic testing equipment, you can ensure that you're taking full advantage of your business' assets when the opportunity for growth presents itself. But don't take the word of your local equipment sales rep or another party who has a vested interest in that value. Instead, consider having an independent third-party appraiser value your machinery. By working with an accredited equipment valuation specialist, you can ensure that the valuation report you receive will reflect an accurate estimate of the equipment's value, not an over- or under-estimation designed to help the appraiser sell more of their equipment.

Tags: Medical Lab Diagnostic Testing Asset Appraisal

How Rig Site Safety Asset Appraisal Protects Your Business's Bottom Line

Posted by Equipment Appraisal Services on Mon, Mar 02, 2020 @ 08:00 AM

Oil platform

When you're in the oil and gas safety business, you know that you need to run a tight ship to keep operating profitably while the market is hot. But have you considered the assets you have and how they can impact your business' ability to compete? One aspect category that is commonly overlooked is safety equipment. Your clients need to make sure that you've got it on-site just in case, but what is it really worth and can you leverage that value to improve your business? Here's a quick look at how a rig site safety asset appraisal can help protect your company's bottom line.

How Rig Site Safety Asset Appraisal Protects Your Business's Bottom Line

To start, you'll want to consider what kind of equipment you should have appraised:

  • Cargo vans or trucks: To get your equipment from point A to point B, you need vehicles capable of hauling it, whether it's to get the equipment on-site or to restock medical packs and air bottles that have been used up over time.
  • Portable showers: Oil and gas rigs equal dirty work, in terms of dust, grime and sweat as well as chemical treatments that are used on-site during drilling operations. Portable showers are vital to your customers and may take a beating by the roughnecks using them.
  • Heating or cooling trailers: It's fairly common for drilling to happen in some of the most extreme environments on the planet. Whether it's burning heat or freezing cold, trailers protect crew members from exposure injuries and are a valuable asset.
  • Gas sensors and monitors: If your gas sensors or monitors aren't functioning properly or are getting old, they may not provide the protection they're supposed to for your clients. 
  • Fire suppression equipment: A fire on a drilling rig is an oil or gas company's worst nightmare. Your fire suppression equipment is priceless at that point, but what's it worth the rest of the time?

However, there are other types of equipment that you should also have appraised that you may not have considered. This includes: 

  • Emergency medical packs: These small but vital packs provide important medical supplies in a timely manner. Because they're required in so many locations, their value builds up.
  • Personal protective equipment: Safety harnesses, hearing protection, safety glasses, respirators: all of these items keep workers safe on the job and add up to a large portion of your inventory.
  • Oxygen masks and air bottles: These grab-and-go items provide much-needed oxygen during an evacuation, but must be regularly checked, refilled and replaced if malfunctioning.
  • Signs: Where's the emergency exit? Can someone grab the defibrillator? What about OSHA regulations? Without signs, the workplace becomes that much harder to navigate.

By taking the time to have a rig site safety asset appraisal performed on your gas and oil safety business' equipment, you can ensure your accounting books are up to date, your equipment is in good condition and you can leverage every possible asset when you need fast growth. However, that appraisal is only as good as the person making the calculations. Make sure that you have your equipment appraisal performed by an accredited equipment appraiser who doesn't have any interest in the final result and can provide you with an independent estimate of your equipment using tested methodologies that will hold up in legal, financial, tax and insurance issues.

Tags: Rig Site Safety Equipment Appraisal

What Type of Commercial Trailer Fleet Appraisal is Available?

Posted by Equipment Appraisal Services on Mon, Feb 17, 2020 @ 08:00 AM

fleet trailer valuation

Whether you're in logistics, manufacturing, shipping, construction, agriculture or some other industry that requires the movement of large equipment and quantities of material, the assets that you use to move those items are of paramount importance to your business. What would you do if those vital resources weren't available? If you think that your business insurance would cover losses, you're right, but at what cost? By knowing the value of your trailer fleet, you can improve your chances of getting a fast, favorable resolution to a number of potential issues. A commercial trailer fleet appraisal provides you with the information you need to leverage those assets to your company's benefit. Here's more about the different types of commercial trailers available on the market and how they're appraised.

What Type of Commercial Trailer Fleet Appraisal is Available?

Let's start by looking at some of the differences between commonly-available types of commercial trailers:

  • Box trailers are one of the most common types of trailers, consisting of a box that is permanently affixed to the base. This type of trailer provides protection to the materials or goods being transported.
  • Grain trailers contain special valves underneath the trailer that can be opened to allow grain or other dry food materials such as soybeans, to flow out at the grain mill, allowing for easy unloading.
  • Tanker trailers carry a wide range of liquids and gasses, such as diesel fuel, milk, anhydrous ammonia and similar materials. They must maintain a strong, sealed compartment to avoid contamination.
  • Livestock trailers allow stock to be moved from the farm to the feedlot to the processing center. They are ventilated to allow for fresh air to be circulated to the livestock and are often sized to specific species of animals.
  • Refrigerated trailers are insulated and have separate climate control systems and on-board fuel supplies for those systems. This allows refrigerated or frozen food to be safely transported between locations.
  • Flatbed trailers provide easy options for loading and unloading, as forklifts can simply place or remove pallets of material from the trailer. They do not provide a great deal of protection to the materials they are hauling.
  • Vehicle trailers are designed to allow a number of vehicles to be hauled by a single semi, with an assortment of hydraulic rams in place to raise and lower different decks during loading and unloading.
  • Equipment trailers are specifically created to carry heavy machinery, such as backhoes, bulldozers and other equipment. It's designed both for the heavy weight of the equipment as well as the bulky size of the machinery.
  • Cargo trailers are designed to be fitted with cargo containers from shipping, whether by ship or rail. This type of trailer allows goods to be transported without additional handling of the material inside, lowering overall logistics costs.

By having a commercial trailer fleet appraisal performed on your company's assets, you'll have documentation of value for a wide range of purposes. However, to gain the most benefit from your appraisal, you'll want to make sure that the process is carried out by an accredited equipment appraisal specialist. The methodologies used by accredited appraisers have been tested over and over again in legal, financial, insurance and tax circles, providing you with a solid estimate of value that is free from outside influences.

Tags: Commercial Trailer Fleet Valuation

What Equipment is Evaluated in a Recycling Facility Asset Appraisal?

Posted by Equipment Appraisal Services on Mon, Feb 03, 2020 @ 08:00 AM

Recycling Facility

With the changes in today's culture to focus on sustainability, recycling has become a hot business. From LEED construction credits for materials that contain recycled content in them to initiatives to reduce waste in municipalities, recycling businesses are seeing significant growth. But what is the value of that recycling company? A recycling facility asset appraisal can help your business flourish, providing you with information on the value of your equipment. But what equipment is evaluated during the appraisal process and how is it valued? Here's a quick look at the equipment and process involved.


What Equipment is Evaluated in a Recycling Facility Asset Appraisal?

  • Conveyance equipment: To move your recyclables from one location to another within your facility and to make it easier to load these items for shipping or processing, the equipment that conveys your items around is of vital importance to your business' success. Conveyor belts, hoppers and similar equipment are appraised based on its condition, demand for that equipment in the market and similar aspects that will impact the equipment's value in the market. 
  • Material handling equipment: Beyond simple conveyance, some material must be handled with other equipment. This can include a range of items, such as pallet jacks, forklifts, loaders and similar machinery, which is used to haul and load bales, hoppers, pallets and other types of storage for the material you're recycling. This type of machinery can often be used in other industries, therefore the equipment's value can be influenced by its popularity in those industries, so understanding the factors that can influence that value is of vital importance to the financial health of your business.
  • Sorting equipment: To keep your operation running efficiently, you need sorting equipment that will quickly and effectively sort one type of recyclable from another, which can happen based on weight, type of content and similar properties so that you can get those recyclables to market with very little contamination in your batches. The accuracy with which this type of equipment can sort materials, the condition of the equipment and the amount of material it can handle within a set period of time can all impact the overall appraised value of the equipment as demand for that machinery and the recyclables it sorts rises and falls.
  • Packaging equipment: The machinery that packages your equipment into larger quantities and makes it easier to handle, load and transport helps keep recyclables moving throughout your facility. Balers, compactors and related machinery are a vital part of your business, the loss of which can create serious problems for your company. Though these pieces of equipment can be used in other industries, some are too specialized for use outside the recycling industry, so understanding which types of equipment can be used in which situations is important to determining the value of the machinery.

By having a recycling facility asset appraisal performed, it provides you with solid information about the value of your business' equipment assets. However, it's of vital importance that the valuation is performed by an accredited equipment appraiser, because doing so ensures that the valuation that is calculated is free of other influences. An accredited equipment appraiser is able to provide you with an independent third-party opinion on the value of your equipment, without being interested in the outcome of that valuation.

Tags: Recycling Facility Equipment Appraisal

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