Finding the value of your assets can help you out in various situations. If you’re looking to find the value of your assets, a well-established plant and equipment valuation firm in Queensland will be your best ally. The right company will be able to provide a valuation service for all your business needs and will only assign one of the best asset valuers in the state.
An expert valuer will be able to assist you when you are:
- Selling your assets or looking to buy new ones
- Drawing up a regular or overdue financial report
- Checking how much your assets are worth on the market.
How to find the value of your assets
Finding the value of your assets is fairly effortless on your behalf. When you make use of a valuation service, a Certified Practicing Valuer (CPV) will do all the hard work for you. This is how painless the process can be for you:
- Step 1: Contact the valuation company of your choice.
- Step 2: Prepare for your valuation and gather all vital documents.
- Step 3: Allow your valuer to assess your machinery and equipment.
- Step 4: Wait for a few days while they conduct market research and compare data.
- Step 5: Congratulations, the valuation of your assets is complete.
CPVs have years of experience and undergo extensive education and practical training. This is significant as assets vary greatly throughout several industries. Thus, plant and equipment valuations cover such things as commercial washing machines, harvesters, cranes, oil tankers and so much more. For effective operation and financing, all tangible assets need to be valued. This will also make it easier for the owners, or managers thereof, to make financial decisions for the business's future.
What information is required for the valuation of assets?
Valuers cannot determine the value of your assets without relevant information. This is why they will request some details and documentation from you. Any additional supporting paperwork that may not have been requested but could be crucial should also be shared.
What's needed will vary depending on the type of assets being valued. We'll give you a brief rundown on what sort of information you could supply a CPV below.
What information is needed for plant and machinery valuations?
Here are the documents needed when you want a valuation of your plant and machinery:
- An inspector’s letter of approval
- Documents outlining the nature of operations
- The names, makes and models of all machinery and equipment
- Manufacture and purchase dates
- Any maintenance or upkeep papers
What do I need for a business asset valuation?
Apart from your building lease or deed, tax and insurance, you will also need the following:
- Official business plans
- Balance sheets stating income and expenses
- Any loan approval letters
Where can I get a copy of my valuation report?
You will get a copy of your valuation report from your valuer once it is complete. The wait is usually just a few weeks long, depending on the complexity of your assets and its assessment. The report will include everything, including a summary of which approaches were used, the valuer’s instructions, the condition of your machinery and equipment, photographs, etc.
The CPV’s particulars, academic background, and certification will all be included in the report. You can therefore present it as evidence to attest to your asset’s worth, whether for insurance, taxation, or legal purposes.
If you applied for a loan from a bank or lender, you probably won't get any feedback on the assessment that they do of your assets. It will be sent directly to the broker, who will then determine the final loan value that you qualify for.
How long is an asset valuation valid for?
Even though the valuation report you get doesn't have an official expiration date, market conditions are always changing. If you want to stay up-to-date with the value of your assets, a regular valuation can help you do so. You can get a new report once or twice a year, or even after every three months, depending on the condition of the market.
How does valuation work for assets?
The value of different assets are determined differently. Most can be evaluated based on its cost, comparable sales, and ability to generate a profit for its owner.
The assessment of business assets, plant equipment, and machinery requires a different valuation technique. The three most common methods are as follows:
- The market approach The value of similar assets sold in the recent/current market.
- The replacement cost. How much it would cost the investor to replace the assets.
- The capitalisation approach to income. A calculation of the potential income the asset may generate for its owner or investor.
Market conditions and the rate of supply and demand are also considered for the valuation of assets.
Summary
There are many types of assets that can be valued in an assessment of plant and equipment. This is across various industry sectors.
It is relatively easy for someone to request a valuation service. You can do so online or by getting in contact with an asset valuation firm in Brisbane.
All in all, a valuation service will be beneficial if you intend on upgrading, selling or buying any assets. Other reasons include tax and insurance purposes.
This may be necessary to provide an accurate and fair assessment of the current market value of plant and equipment.
Certified Practicing Valuers (CPVs) have the education and training necessary to provide valuation services of a high standard. CPVs are registered with the Australian Property Institute (API) and the Royal Institute of Chartered Surveyors (RICS). Your report will therefore include their qualifications and credentials. This means that it can be used for any serious matters, like tax and litigation.
Contact Plant & Equipment Valuation QLD today to get in touch with an expert. They’ll be able to help you check how much your tangible assets are worth with a professional valuation service.