Equipment Appraisal Blog | Understanding Machinery Appraisals

Why Do You Need A Machinery & Equipment Appraisal?

Posted by Equipment Appraisal Services on Mon, Aug 24, 2020 @ 08:00 AM

Importance of machinery & equipment appraisal

Whether your business is expanding or going through a downturn, being purchased or sold, audited or invested in, refinanced or liquidated, it is important to understand the real market value of your tangible assets, specifically the machinery & equipment that work every day behind the scenes.

Obtaining an equipment appraisal from a qualified valuation firm such as Equipment Appraisal Services can provide you with firsthand knowledge of the value of your machinery and what to expect should you wish to buy, sell, refinance or upgrade these types of assets in the resale marketplace. A formal appraisal analysis and report can assist you in any number of ways as you move through the next phases of your company’s development and can be shared with third parties who may be assisting you with these project plans.

Our appraisers can visit your operations facility and perform an on-site personal inspection and discuss your business directly or complete a “desktop” appraisal based on the information you provide to us, including detailed asset listings and photographs.

The experienced appraisers at Equipment Appraisal Services have been completing these types of fully researched valuations for decades and can meet the demands of any machinery & equipment appraisal assignment across all markets & industries. We look forward to the opportunity to work with you as a key component to your ongoing business projects.

Tags: Machinery & Equipment Appraisals, Equipment Appraisal Services, Tangible Assets

Machinery & Equipment Appraisals: Blending The Best of Both Approaches

Posted by Equipment Appraisal Services on Mon, Aug 10, 2020 @ 08:00 AM

machinery equipment appraisal blending approaches

Machinery & Equipment appraisers know from experience that the overwhelming majority of their valuations involves the Sales Comparison (Market) and/or Cost Approaches to value. The income approach is primarily utilized for business appraisals with a few exceptions which allow the tangible equipment to be valued as independently income driven assets.

The challenge becomes which of the two approaches makes the most sense given the scope of work, premise of value and overall perspective of the project involved. Based on our experience at Equipment Appraisal Services, we have found that regardless of the above variables, relying on components of both the Sales Comparison Approach (commonly referred to as the “Market Approach”) and the Cost Approach for each valuation project produce the most credible, realistic and supportable results.

Under the Sales Comparison Approach, researching and properly interpreting the available data in the marketplace for assets very similar to those being appraised is critical to the analysis. Understanding the nuances between asking prices, recent listings, opinions of resale value and the market level at which the machines are traded are all important to the appraisal process.

With the Cost Approach, deriving the data pertaining to replacement cost new, useful life and depreciation should come directly from the specific markets and industries in which the assets are working in. Gathering new pricing information for the make and model of the machinery, along with opinions from third parties who buy and sell these assets is far more reliable than broad multi-industry trends and straight line depreciation.

The experienced appraisers at Equipment Appraisal Services have been completing these types of fully researched valuations for decades and can meet the demands of any machinery & equipment appraisal assignment across all markets & industries. We look forward to the opportunity to work with you as a key component to your ongoing business projects.

Tags: Machinery & Equipment Appraisals, Approaches

What Kind of Equipment is Covered in a Marine Vessel Appraisal?

Posted by Equipment Appraisal Services on Mon, Jul 27, 2020 @ 08:00 AM

Trade boat at the port of Miami
Barges, boats, resupply, tugs: whatever kind of vessels you run, have you considered the value of a marine vessel appraisal to your overall operation? Though many business and equipment owners have a vague idea of the value of their marine equipment, having a professional appraisal performed is often overlooked until it's time to sell equipment. But what kind of marine equipment is typically covered during this type of appraisal? The answer may surprise you. Here's a quick overview of what machinery is covered in the process.

 

What Kind of Equipment is Covered in a Marine Vessel Appraisal? 

 

  • Inland Barges: Though much of the midwest and west was settled because of river traffic, many people don't consider this type of transport anymore, despite its function to keep things moving that would otherwise be prohibitively expensive, such as aggregate, sand, grain, trash, oil, timber, metal ores or other bulky, heavy goods, providing a much-needed, inexpensive option to move these materials to market.
  • Offshore Barges: Rivers aren't the only places that you'll see barges moving materials, though offshore barges tend to be larger and with more displacement than their smaller riverboat counterparts. Offshore barges are able to move a wide range of materials between points on the shoreline, without going further afield in many cases due to rougher weather and waterways that may be found further from the coast. At the same time, their smaller engines help provide a more economic option for moving bulk goods.
  • Tugboats and Pushboats: Whether it's pulling barges off of sandbars or similar obstructions, getting large ships safely out to sea before their main engines are engaged, shuttling barges at a loading station or any number of other circumstances, tugboats and pushboats are powerful marine vessels that do a wonderful job of getting much larger ships underway, typically sticking closer to shore for the majority of the time to avoid choppier waters further out to sea.
  • Hopper Barges: When large amounts of material must be moved, unpowered hopper barges are often chained together, creating a waterborne train of material. This provides the option to move large amounts of material without having to have numerous navigators or crews manning the different vessels, as one is simply pulled along behind the other. This allows a single crew to pull thousands of tons of material along a set course without a lot of extra manpower.
  • Oilfield Support Vessels: Offshore oil platforms and drilling rigs need a wide range of materials, changes in crew, new parts for the rig and a number of other items that have to be exchanged at a dizzying rate. Food, medicine, protective equipment, pipeline, couplers, experts, oncoming and offboarding crew members and a wide range of other people and items are carried by oilfield support vessels, providing an inexpensive alternative to spendy helicopter rides for many petroleum companies.

By having a marine vessel appraisal performed on your equipment, you can gain valuable insights into its condition, expected useful lifespan and several other important pieces of information that will help you better manage your equipment assets. However, it's of vital importance that you have the appraisal performed by an accredited equipment appraiser, who will provide you with a properly calculated estimate of your marine assets' value.

Tags: Marine Vessel Valuation

What Happens During an Oil & Gas Pipeline Equipment Valuation?

Posted by Equipment Appraisal Services on Mon, Jul 13, 2020 @ 08:00 AM

close up of industrial pipes of oil industry production
When your daily operation keeps you focused on moving crude oil, natural gas and other petroleum products to your customers, you know that you need to keep your pipeline operating at peak efficiency. A breakdown can cause serious problems for your company. But have you considered the value of that equipment? If you've wondered what happens during an oil & gas pipeline equipment valuation, here's a quick explanation of the process.

What Happens During an Oil & Gas Pipeline Equipment Valuation?

When your oil & gas pipeline equipment is appraised by an accredited equipment appraiser, there are a number of steps taken to ensure the value that is estimated is accurate to your specific equipment's capabilities and condition. These steps help the appraiser compare your equipment to similar machinery in the industry and estimate a fair value based on this information. But what kind of equipment is appraised? In addition to the pipeline itself, the appraiser will also look at components such as control valves, tanks, wellheads, pumps, rods, vertical separators, and, virtually every piece of equipment that is part of your pipeline. If you have computers that are used in monitoring your pipeline status, if you have heavy equipment for maintenance and repairs, if you have emergency response equipment for dealing with these types of events all of these assets can be appraised as part of your overall equipment base, ensuring that you have a complete estimate of value. The appraiser will look at the specific manufacturers and models for each item, as well as its age and condition.

They will also look at the overall demand for that type of equipment, which can impact value, as well as how well the equipment has been maintained and repaired over the years. All of these factors will be taken into account when estimating value. If a piece of equipment has been well-cared for, it will have a materially higher value than one that has been abused or left without proper maintenance. This is all reflected in the appraiser's analysis. If the market for pipeline equipment is especially active, such as when the Bakken oil formation took off a decade or so ago, that demand will be reflected in the value of your equipment. If the industry is going through a slump due to lower oil prices, demand for that equipment may decrease, which will also be reflected in your asset value. Many factors feed into estimating machinery value, which all must be taken into account by an accredited equipment appraiser.

By having an oil & gas pipeline equipment valuation performed on your petroleum product machinery, you'll have a better idea of what it's worth, how long you can expect it to continue to operate economically, and an understanding of it's overall condition and demand in the industry as a whole. This provides you with valuable insights to help you better manage your oil & gas pipeline business effectively and efficiently, making it less risky to make important decisions when opportunities present themselves to your business for solid growth.

Tags: Oil & Gas Pipeline Equipment Appraisal

What Kind of Equipment is Evaluated During a Graphic Arts Printing Equipment Appraisal?

Posted by Equipment Appraisal Services on Mon, Jun 29, 2020 @ 08:00 AM

Man in printing house showing client printed documents
Is printing and graphics a central concern of your business? If it is, the value of that equipment can make up a solid portion of your business' overall assets. However, that equipment is often misrepresented in terms of value in your balance sheet. Because this type of equipment often has a long lifespan, equipment depreciation rates used in tax tables may reduce your equipment's value to zero long before it has stopped providing value for your business. Here's a quick look at the kind of equipment you can get an estimate of value with during a graphic arts printing equipment appraisal.

What Kind of Equipment is Evaluated During a Graphic Arts Printing Equipment Appraisal?

  • Sheetfed Offset Presses: Used for a wide range of different printing purposes, sheetfed offset presses are often at the heart of businesses that provide a number of products in different sizes, including newspapers, advertisements, postcards and similar paper products. Because sheetfed offset presses deal better with this range of sizes, it provides superior flexibility in daily operations.
  • Web Presses: Producing documents using huge rolls of paper rather than individual sheets, web presses deliver efficiency and economy for many businesses, providing a better option for mass production operations. However, it represents a serious investment for many businesses, which can be rolled into your balance sheet for more accurate figures.
  • Pre-Press Equipment: From high-end computers that are designed to handle the burden of graphics design to the specialty equipment you use for providing proofs to clients prior to mass production, your pre-press equipment keeps orders rolling in without getting in the way of your mainstream operations.
  • Bindery Equipment: As anyone in the business can tell you, what the product looks like on the press can be very different than the finished product. Folders, stitchers, trimmers and similar machinery help turn loose paper into a quality finished product, with sharp folds, quality binding and neat edges.
  • Materials Handling Equipment: When you need to move pallets of paper or other material to keep your presses rolling, the equipment you use in this process is the lifeblood of your business, keeping things from grinding to a halt when a new shipment arrives or a machine needs to be replenished to continue getting the job done.
  • Shipping Equipment: Unless you run a local-only shop, you're probably going to have to ship your products to your customers. Whether it's shipping scales, conveyor belts, packaging machinery or similar equipment, being able to get your finished product boxed and out the door helps keep your workspace free for operational purposes.
By having a graphic arts printing equipment appraisal performed on your business, you can ensure that you have an accurate estimate of the value of your business assets, giving you a more accurate balance sheet. When presented in an appraisal report from an accredited equipment appraiser, you can use this information to help in a range of different situations, whether it's filing an insurance claim after an equipment fire, appealing a bad tax assessment or securing financing for growing your business.

Tags: printing equipment appraisal