Asset Valuation and Appraisal service Our extensive experience covers a broad range of industrial asset classes from different industries, including

Plant and machinery are usually representing the largest investments portion for revenue generation is the cornerstone of businesses operation. They can be classified as Fixed business Assets which include all assets or devices used in all industry sectors either for manufacturing/production, the supply of goods/services, for lease to a third party or for administrative purposes and that are expected to be used for more than a year.

An appraisal is the act or process of developing an opinion of value. Value is the monetary worth of property, goods, or services. Given that there are countless different types of machinery assets, most of which can be moved, it is important to recognise different premises (Basis) of value. These can be classified broadly into 3 categories, depends on an asset’s prospective use. A) Sale for removal for similar or alternate use at which the estimated value considers removal costs to specific location at specific date. (B)Continued use of the asset for the purpose for which it was designed and acquired. This basis of value considers all normal direct and indirect costs, such as installation, assemblage costs to make property fully operational. (C)Liquidation value, is the estimated gross amount, that could be achieved from liquidation sale, with a seller compelled to sell an as-is, where is-basis, as of a specific date. Valuation premises words can be expanded or modified by the appraiser as the purpose and function of appraisal dictate. Other important value premises include salvage value, scarp value and insurance value.

All valuations are undertaken and conform with the Guidance Notes laid down by the Royal Institution of Chartered Surveyors. Our membership in the Royal Institution of Chartered Surveyors assures a high standard of valuation and strict adherence to the code of ethics and reporting.

The purpose of the valuation process is a systematic procedure to produce a well-supported opinion of value that shows the appraiser has considered all factors that materially affect the value of the assets being appraised. Experienced machinery and equipment appraiser are professional fact and data collectors.
The valuation process can be summarised as follows, the appraiser understands and identify the appraisal problem, collect relevant information, data and classify assets; conducts market research and applies appropriate analytical technique to reach conclusion.

Three valuation approaches are generally recognised; the cost, sales comparison, and income approaches. Theses approaches are widely accepted by financial institutions, courts, government agencies, business, and society in general. The valuation circumstances involving particular asset may not al the allocation and correlation of all three approaches to value. Valuers are required to consider the three approaches to value and decide which approaches are applicable to the situation at hand.

It is paramount to ensure that business assets are adequately insured to prevent a reduced payment relating losses where the clause of average might otherwise be invoked; and also, in order to avoid excess premium being paid in respect of over insured property.

All valuations are carried out by or under the direct supervision of a valuer who is a Registered Valuer under the RICS Valuer Registration Scheme.