When you’re looking at machinery and equipment appraisals, the different approaches taken to determine machinery valuation can seem mind-boggling at times. As an equipment appraiser, I know best which type of appraisal fits my Client’s situation and their business’ needs, but knowing a bit about common appraisal practices helps you better understand your equipment value and how it affects your business’ bottom line. Let’s take a look at what this type of appraisal can do for your business:
What are fixed asset appraisals?
Accounting practices such as depreciation will often lower the value of a piece of equipment on the books to zero long before the machinery ceases to provide value for the business. A fixed asset appraisal looks at the actual value of the machinery. Transactions that involve selling, buying, or merging a business often require that equipment appraisals be performed to provide an accurate picture of the business’ financial condition. A business expansion that requires collateral for financing arrangements will often use a fixed asset appraisal to provide the same type of clarity. Having documentation of an asset’s value from a qualified machine appraiser is often vital to insurance claims, especially if you’d rather get the claim done and get your business back into action instead of fighting with the insurance company over the value of equipment that has been lost.
Make sure the equipment appraiser hired is from a firm that is an Accredited Member of the American Society of Appraisers with a designation in Machine & Technical Specialties to best protect your bottom line. Contact me today with any referral Gate Openers such as business owners, Commercial lending institutions or CPA’s that require a certified appraiser.