Machinery and Equipment

MNP’s independent and clear valuations on machinery and equipment allow you to access the full benefits of potential of your investment by providing the information you need for decision-making and strategizing.

We have experience valuing machinery and equipment for a variety of industries, including agriculture, mining, quarrying, oil and gas extraction, utilities, construction, manufacturing, wholesale and retail, transportation and warehousing, educational services and healthcare, and accommodation and food services.

Increasingly, more and more business owners are requesting independent, professional valuations of their machinery and equipment for:

  • Establishing a fair market value and acquiring market knowledge to use in final negotiations on the sale of an asset
  • Insurance placement
  • Mergers and acquisitions
  • Allocation of purchase price
  • Financial planning
  • Liquidation and foreclosure
  • Asset control and management
  • Property accounting
  • Financing

Premise of Value

The intended use of the valuation will determine which premise of value is appropriate for the assignment. Machinery and equipment valuations are completed under four premises of value:

  • Insurance Replacement Value; (Replacement Cost New, Reproduction Cost New)
  • Actual Cash Value
  • Market Value – Continued Use
  • Fair Value
  • Orderly Liquidation
  • Forced Liquidation or Auction Value
  • Salvage Value

Often several value estimates are provided to facilitate multiple uses.

Valuation Process

We always start by outlining an engagement letter as we prefer to ensure that we are capturing the needs of our client. The letter includes the terms of our engagement and the approach that we will follow in preparing our appraisal.

MNP’s machinery and equipment valuation services encompass a broad spectrum of analysis. The general scope of our review includes:

  • Project planning to determine the scope of work, overall timing and scheduling, optimal timing of site visits and the quantity and format of the deliverables
  • Identifying machinery and equipment
  • Equipment listings, completed at the facilities, including a review of the system process flow, specifications, maintenance records and other production capacity information
  • Reviewing current manufacturers’ price lists, price quotations and price catalogues to determine the current cost of a new item of the same or similar function
  • Reviewing and analyzing the equipments’ age, physical condition, size and/or capacity along with the degree of functional obsolescence present, if any and as required
  • Researching and reviewing comparable equipment sales in the marketplace, if any
  • Developing an opinion of value using the appropriate valuation approach or approaches (the three traditional valuation approaches are cost approach, direct comparison (market) approach and income approach)
  • Reviewing and analyzing gathered data to assess market or insurable value of machinery and equipment

Our machinery and equipment valuations are completed by a senior accredited member of the American Society of Appraisers carrying the ASA designation (Accredited Senior Appraiser) and are in conformance with the Uniform Standard of Professional Appraisal Practice.

For more information on how MNP can perform a machinery and equipment appraisal, please contact your local MNP business valuator.

American Society of Appraisers (“ASA”) accredited appraisers are experts. The meticulous ASA accreditation process ensures that ASA-accredited appraisers are accurate, impartial, and credible. They are educated and experienced in their fields and are respected members of their communities. They can deliver independent valuations that assure your property is appraised at its fair market value.