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.

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.

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.