6th Jul 2016
Most businesses out there depend on modern equipment. It is necessary to produce products and help with logistics. That’s why it is vital to keep this useful equipment highly maintained. The equipment is a real asset to any business. It should be properly valued. With that being said, appraising the equipment is not something easy. You will need help from certified equipment appraisers if you want to know the value of your equipment.
When Is It Necessary To Appraise Your Equipment?
There are many reasons why companies need to know the value of the machinery. A certified business valuation will help you in times of:
- Acquisitions or mergers
- Applying for loans
- Filing taxes or bankruptcy
- Selling the equipment
The value of your business’s machinery is critical to assess the value of the entire business.
Different Types of Appraisal Reports
As per the USPAP (Uniform Standards of Professional Appraisal Practice), businesses at this point accept two types of appraisals:
1. Complete Appraisal Reports
A report that contains all the information on the equipment: its condition, market value, the salvage value, the number of years it operated, and so on. This is one of the most common types of appraisals.
2. Restricted Appraisal Reports
A restricted appraisal report is an in-house report that is usually performed for internal purposes. It’s usually performed when the user of the evaluation report and the client are the same. This kind of report is not used for external purposes.
It is advisable to choose certified equipment appraisers who have sufficient experience and a good track record. They can help ensure that your business is properly evaluated.