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.

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.

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.

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.

When your business suffers a loss, the insurance policies that you've been paying into are intended to cover those losses and keep you operating smoothly. However, the reality of the process sometimes falls short of your expectations. If you're dealing with an insurance claim with an adjuster who isn't seeing why your equipment is worth more than they're offering, an insurance claims appraisal can help make the process go more smoothly. Why? Here's a look at how this process works.

How Does an Insurance Claims Appraisal Help Advance Your Claim?

Though insurance claims adjusters have some level of specialty, such as vehicles, homes, injuries or similar areas, that doesn't mean they're a specialist for your business' specific equipment. It's very easy to mistake your machinery that has a particular option or kit added to it for one that does not, a difference that can mean your claim settlement is offered at thousands of dollars less than what your machinery is actually worth when all of those aspects are taken into account.

The claims adjuster may not have a good idea of how to evaluate the condition of your equipment, especially when it comes to determining the value of your machinery before it was damaged in a fire, flood or other devastating events. Was the equipment in that poor of condition before, or were the bare wires caused by a fire? Was it that rusty before the flood? It's very easy for an adjuster who is not accustomed to seeing your equipment in its operational state make poor decisions in trying to determine the machinery's original condition and remaining useful lifespan.

Is the claims adjuster taking into account the market conditions at the time? If your region suddenly had strong construction growth following a flood, that machinery may be worth more today than it was in the past, when construction wasn't as strong. That means that the replacement value of that piece of equipment may have gone up significantly. Your construction company may be in a worse financial situation if you accept a lower settlement on your insurance claim than what the equipment is actually worth. 

What about the kind of value the claims adjuster is calculating? If your equipment has been completely ruined beyond any hope of repair, is the adjuster calculating salvage value of what the equipment is worth for scrap and parts? Are they calculating the original value, that may leave you short of funds when it's time to replace that equipment, especially if it's been many years since it was initially purchased? Are they calculating replacement value minus what they expect the salvage value to be, leaving the old equipment for you to deal with in terms of salvage and disposal? It's important that the value that you receive when your claim is settled will actually cover the expense of replacing that equipment, including installation, shipping and similar expenses.

By having an insurance claims appraisal performed, you can ensure that your interests are being protected during the claims process. This allows you to focus on getting your business back on its feet instead of babysitting claims adjusters and the claim process. However, make sure that you're working with an accredited equipment appraiser to ensure that the appraisal report that you receive is free of the appraiser's interests.