When Valuing Assets, What You See Isn’t Always What You Get!

When Valuing Assets, What You See Isn’t Always What You Get!

How much is an asset worth?

The answer to that question is important if you are looking to determine the value of a machinery or equipment item in a variety of situations.  For business activities such as bankruptcy proceedings, business valuations, loan collateral, liquidations or mergers & acquisitions, getting asset values “right” can ensure an accurate successful transaction.

An item could be fairly new, but may have succumbed to functional obsolescence. Or a piece of equipment may have a value lower than expected due to economic conditions. Conversely, an asset might even have a higher value than what is reflected on the books. For example, accounting depreciation allows for rapid write-off of an asset. In reality, the useful life of an item is usually longer than the accounting life. Thus, the value is higher than that reflected on the balance sheet. One just can’t determine what a value might be without knowing an industry or understanding market dynamics.

At Brumbaugh Appraisals, we are experts at determining the value of assets. We have had experience valuing assets for bank collateral, IRS gifting, and legal situations. If you come across a situation in which the value of non-real estate assets is in question, give us a call. We are Master Certified Machinery and

Equipment Appraisers and can deliver a quality estimate of value on time and at a fair price.

Thanks for thinking of us for your next equipment appraisal needs.

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