29th Mar 2016
When it comes time to market your company, an asset appraisal can help you get a higher price for your business. You can use it as a strong negotiating tool when discussing the sale with prospective buyers. In addition to the knowledge of a starting price, it determines your preparedness for a takeover or sale and represents a variety of other things you stand to gain.
1. Whether you are facing a merger or a hostile takeover, hiring certified equipment appraisers can be extremely useful. For starters, it can aid you in rationalising the worth of the concern that you are to demand during the deal.
2. Also, in the event that the person or company that is seeking to acquire your business needs funds from a bank; they will be asked to appraise the machinery first. The bankers will see this as proof of your equipment’s worth that will be necessary as collateral later.
3. Quite often sellers tend to overestimate their machinery’s actual worth, which is why a professional appraisal can be helpful.
4. Buyers also request this service from you as it is necessary for them to allocate the asset values for their balance sheets, as this enables them to assign the amounts of depreciation.
5. When you are negotiating a sale, you will have to note down the charge at which you have handed over all your tangible assets. These include everything from your factory equipment, office chairs and tables, movable fixtures and such items. This is needed for taxation purposes and demanded by the IRS, so as to elude any attempts of tax evasion.
People hire certified equipment appraisers so as to determine the just value of each gear and to avoid falsification of values when handing over their filled tax sheets to the IRS at the end of the fiscal year.