If you want to determine the worth of your equipment, book value rarely provides an accurate estimation. However, as a manager or business owner, there will be a time when you have to know the real value of your equipment or machinery. The best way to it is to have an equipment appraisal when a professional appraiser can do all the necessary estimations for some or all of your machines. So, what really happens during the appraisal? Here are some important things to expect.
You probably have several reasons why you will need equipment appraisal to be done. It can be due to acquisition or merger, a business valuation perhaps, paying taxes, insurances, partnership dissolution, or even insolvency or bankruptcy. Whatever situation you are in, a qualified appraiser is equipped with the right knowledge and tools on how to do the valuation more accurately and reflect the real value of your equipment.
As for the time for the appraiser to complete the task, it depends on many factors. The number of equipment you need to be appraised is one big factor. If you only have a dozen of machinery, then the equipment appraisal will be finished more quickly than if you have a huge facility with about a hundred of machines to be appraised. Other things that can impact the completion of the job include the type of equipment you have, the number of value levels, and when you need the final report.
In terms of the process, it starts with the professional appraiser taking inspection of all the equipment in interest and taking note of all the information needed for the valuation. Some of the relevant information would be the machine’s serial number, make and model, condition, and any modifications or upgrades. After all this information was documented, the actual equipment appraisal can begin to establish value for your assets. You can then wait for the final report furnished with a certification for whatever purpose you will have it for.
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