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.