Important Things to Know When Planning for an Equipment Appraisal

Every business at some point comes across the task of assessing the value of their inventory and equipment.

 

It can be for auditing purposes, for potentially downsizing or to liquidate some assets. Whatever the case may be, with inflation rates, industry changes, equipment usage and more, it would be worth seeking out professionals for your equipment appraisal for a more accurate idea of what your investments are worth. That being said, here are some of the important things you should know beforehand and be prepared when you are asked of such a question either by a bank or a potential buyer. 

 

Not every scenario requires a certified business equipment appraiser

Needing a machinery or equipment appraisal could be prompted by plenty of reasons but there are certain scenarios that more commonly require it. These include buying or selling agreements, financing or small business lending, mergers, and acquisitions, property taxes, business valuations, or bankruptcy. 

 

The time it takes for the appraisal to finish

The amount of time needed for an equipment appraisal to complete depends on many factors. The first factor depends on the type and quantity of machinery to be appraised. Other important factors that can affect timing requirements include the levels of value being requested and when you need the final appraisal. 

 

What to expect during the process

The very first thing you can expect is the appraiser requesting to see all documents with relevant information that is needed to identify the equipment or machinery to be evaluated. Pieces of information such as make, model, and most importantly, the serial number of the machine will be requested. Moreover, the specific condition of the equipment will also be asked to know the level of maintenance each of the machines receives, which can be supported by maintenance or upgrade records.  

 

After those appraisal steps have been done and all documentation has been examined, the appraisers can then start the research to establish the most accurate value for your machinery in a certified report.

 

If you’re looking to move forward with an appraisal with ease, partner with a knowledge service provider like Infinity Asset Solutions. With decades of experience, and a team that has catered to a variety of industries, your business will be in the right hands. Contact us today to learn about the services we can provide you!