Accurate machinery and equipment appraisals come from understanding the intricacies of each asset. With decades of experience, AccuVal’s machinery and equipment appraisers conduct valuations in more than 100 industry segments. The appraisal process is expedited using proprietary, state-of-the-art information management systems fully integrated with the world’s largest database of transaction and market data. Our appraisers quickly leverage current market data results in their machinery and equipment valuations so that conclusions include up-to-the-minute analysis—exactly the kind of information needed to make fully-informed business decisions and maximize the value of assets throughout their lifecycle.
High-quality machinery and equipment valuations directly benefit corporations in many ways. Every year, AccuVal helps companies obtain billions in working capital by appraising assets being pledged as collateral to asset-based lenders. Corporations also leverage machinery and equipment appraisals to lease a variety of personal property, as well as entire manufacturing operations.
Hundreds of millions of dollars are saved annually when companies use machinery and equipment appraisals to contest current, and sometimes historical, tax assessments/payments. A well-documented machinery and equipment valuation that benefits from the world's largest database of transaction information not only sets the stage for substantial tax savings, but is also an excellent way to remove ghost assets from the books that were have been sold, scrapped or discarded.
Companies expanding through acquisition are required to obtain machinery and equipment appraisals to conform to financial reporting requirements established by the Financial Accounting Standards Board (FASB). This critical part of the acquisition gives corporations the comfort that the purchase price has been allocated properly, proving an accurate starting point to begin taking book depreciation. Machinery and equipment appraisals are also used to satisfy required tests for impairment, measure fair value, mark asset values to market value, establish books and records following bankruptcy and many other important and mandated analyses.
There is no better way to resolve a dispute over the value of assets than with an accurate appraisal. AccuVal's machinery and equipment appraisers have been very successful at communicating a variety of valuation issues in informal proceedings and in courtrooms. The keys to our long-term success have been our comprehensive understanding of the assets being appraised, deployment of the appropriate valuation strategy, intensive preparation, authoritative documentation and the ability to communicate complicated valuation concepts in terms everyone can understand and appreciate.
Risk management is made easy and cost effective when machinery and equipment appraisals are conducted routinely. This frequently results in lowering premium costs both as a result of more accurate estimates of today's replacement costs and a better plan to get back up in running in the event of business interruption.
Keeping assets fully utilized throughout their lifecycle means improved return on investment. Machinery and equipment appraisals help corporations know when and what to buy and sell. By purchasing the best machinery for the intended application, operating costs are kept to a minimum. Replacing less productive machinery and equipment at the height of the market contributes greatly to a positive payback. Machinery and equipment appraisals help companies establish the price for assets when they are redeployed internally and set the stage for the efficient disposition should there be no intra-company "buyers."
AccuVal's machinery and equipment appraisers conduct all valuations in conformance with the Uniform Standards of Professional Appraisal Practice (USPAP) and within the guidelines established by the American Society of Appraisers (ASA). Experienced appraisers with specific industry knowledge inspect assets in plant noting vital descriptive information and production data that make the assets unique. This information is crucial to accurately estimating value regardless of the use of the machinery and equipment appraisal. Major assets are photographed and sometimes manufacturing processes are captured in operation on video. Final reports are authoritative and include a detailed listing of all major machinery and equipment. All of the important factors influencing value are discussed in the report narrative.
Machinery and equipment appraisals often include a condition statement assigned to many items being appraised. The statement of condition is based on a visual inspection only. It is impossible to judge the true condition of an asset without relying on the people most familiar with the asset and its maintenance history. Conditions statements consider the following criteria:
New: New, unused, installed or uninstalled property in excellent condition
Very good: Like new condition, only slightly used, capable of full capacity per design specifications without modifications or requiring repairs or abnormal maintenance
Good: Used property, capable of operating at or near full specified capacity, that has undergone repairs as part of regular maintenance
Average: Used property, requiring some repairs or ordinary replacement of wear parts, with the condition of the item being consistent with its actual age, assuming normal usage
Fair: Used property, operating below fully specified capacity due to age and/or application, requiring general maintenance and/or replacement of components and/or wear parts in the foreseeable future
Poor: Used property, operating below fully specified capacity due to age and/or application, requiring major rebuild and/or maintenance in the near future of its major components and/or wear parts
Scrap: Used property, salvage value only, no longer serviceable, not economically feasible to repair and/or modify, salable only for the recovery of the property's basic material content or reusable component parts
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An appraisal can be leveraged to address many business challenges: