How An Appraiser Accurately Determines The Value Of Your Machinery & Equipment

Understanding The Intricacies Of Each Asset

During the appraisal, it is not enough to simply identify an asset. A proper valuation comes from understanding the intricacies of the equipment and recognizing the assets feature and functions.

What An Appraiser Does:

Assembles pertinent data.
Conducts Market Research.
Applies appropriate analytical techniques.
Applies knowledge, experience and judgment.
Arrives at a conclusion of Value.

What Factors Are Considered When Determining Value?

Condition of the Assets
Features and Options
Functionality
Installation Requirements (When Applicable)
Removal Requirements (When Applicable)
Market Conditions and Trends
Sales of Comparable Assets
Replacement Cost(s) (When Applicable)

The Valuation Process

Red Stripe Inc. expedites the valuation process using a proprietary database and market data. The strength of this database, combined with the on-site experience of our appraisal team, results in a well-documented and thoroughly supported appraisal report that can be relied upon to make business decisions, support expert testimony, and insurance coverage.

Valuation Methods & Strategies

Determining the strategic or economic value of the assets can have a significant impact on the appraisal value. For example, a strategic advantage could be that the company's products penetrate existing market barriers. An economic advantage could be that the company has existing technology that can reduce the cost of manufacturing. An experienced appraiser can determine the appropriate appraisal valuations methods and strategies to use in order to maximize the real value of the company and return a higher value for the seller. Some examples are:

Fully Compliant Appraisals

Appraisals are fully compliant with the Uniform Standards of Professional Appraisal Practice (USPAP).

Put Our Expertise In Asset Appraisals To Work For You.
Call Us Today at 1-617-803-5954.

The Advantages Of An Economic Valuation Strategy

A cosmetic company in up-state New York, way out in the boonies, has a huge facility with lots of in-ground tanks. The tanks are going to incur a very high cost to remove and relocate them. However, the cosmetic plant is very close to their source of raw material and very close to cheap shipping - and their #1 market, Canada.

If an appraisal - for credit or refinancing - is completed without considering the economic advantage that the close proximity of raw material, shipping and target market brings, then the value of the company assets would be very low. Why? Because the appraiser would need to consider the cost of the tank removals when determining the values of the asset.

In this type of situation, the appraiser should discuss how the economic advantage can help with increasing the value of the evaluation.

When the economic advantage is factored in, then the value of the assets changes. Why? Because when the cost or removal is not included in the appraisal, then the value of the assets increases.