A plant and equipment valuation in Brisbane is an assessment of the infrastructure and equipment of your business. The valuation covers a company’s physical assets including machinery, manufacturing equipment, and vehicles. A registered valuation is used for a wide range of purposes including financing, insurance, asset management, and taxation planning.
Only Certified Practising Valuers of Plant and Machinery (P&M) may prepare registered and independent plant and equipment valuations. As such, a consistent standard of quality is guaranteed across every report. By following rigorous legislative and regulatory requirements, clients can rest assured knowing the reports are in line with international guidelines.
Plant and equipment can take the form of vehicles, machinery, office furniture, appliances, network infrastructure, and more. A reliable P&E valuation firm can perform single asset valuations or cover the entirety of your organisation.
As industry experts, plant & equipment valuers approach each task with the highest level of due diligence and care. Each one has undergone extensive training and is committed to preparing precise and detailed valuation reports.
How do you evaluate plant and machinery?
If you need to know the value of the plant and machinery within your business, Valuers who specialise in assessing plant and machinery are well-versed in a combination of trustworthy and tested methodologies
A few of the most commonly used P&E valuation methods for specialised valuers are:
Income Capitalisation Approach
This approach places most of its emphasis on the income being generated by the assets or property. Experts determine the value of existing and future economic benefits associated with the assets. Importantly, this approach assesses both tangible and intangible assets.
The Depreciated Replacement Cost Approach
A method to determine what it would cost to replace the asset with a new and similar one in today’s market. It does not need to be the exact same type of asset but must provide a similar function. The depreciation of the asset has a direct role in the final calculation, and valuers determine how much the asset has worn down over the years.
The Market Comparison Approach
A market comparison approach involves an analysis of recent sales involving similar assets. Valuers can establish a foundational amount by looking at the average price of recent sales. A few necessary adjustments are then made to make up for the differences between the assets.
Why get a plant and equipment valuation?
A few of the main reasons an organisation may seek a P&E valuation are as follows:
Financing
If applying for a loan, the bank or financial lender will likely require an independent valuation of the subject property as it plays a direct role in the willingness to approve an application.
Insurance
A plant and equipment valuation is often used to calculate the necessary amount of insurance coverage for a property or the assets of a business.
Asset management
P&E valuations can lead to more efficient asset management processes. It can help organisations identify under-performing or underutilised assets and make well-informed decisions regarding the future.
Tax planning
A registered plant and equipment valuation can be used to determine the tax liability for a business’s assets. This can lead to effective tax management, which may ultimately reduce your overall tax burden.
Mergers and acquisitions
As mergers and acquisitions involve huge financial transactions, it is crucial for each party to know the true worth of the business in its current state. As such, an informed decision can be made going forward.
The types of P&E Valuations
Registered and independent valuation firms often offer a wide variety of valuation services for all sorts of properties and purposes. The three most commonly requested are:
Asset Valuations
An asset valuation can be for single or multiple assets. These refer to tangible and fixed assets that contribute to the daily functioning of the business. As the importance of asset management should never be underestimated, these services are hugely beneficial for many.
Machinery Valuations
Machinery valuations require the skills of professional valuers who have specialised knowledge of machinery. P&E experts are often vastly experienced and can even provide accurate assessments of custom-made machines.
Plant and Equipment Valuations
A complete and full analysis of all the fixed and tangible assets of a business. The report covers every angle and includes all property, equipment, appliances, vehicles, machinery, and any other asset directly affecting functionality.
Summary
A plant and equipment valuation from a registered and independent firm offers a wide range of benefits for business owners. The independent nature of the report means there is no risk of inherent bias or outside influence.
Certified Practising Valuers of Plant and Machinery (P&M) hold specialised knowledge that enables them to prepare precise and detailed reports. By using a combination of tried and tested methods, clients are guaranteed a consistent standard of quality
The three most commonly requested P&E valuation services are asset valuations, machinery valuations, and plant and equipment valuations. The scale and detail of the report will depend on its purpose.
Registered and independent valuations are useful for a variety of different purposes such as asset management, tax planning, mergers and acquisitions, insurance, and more. Certified professionals custom-make each report to suit the needs of the client.
For more information on how plant and equipment valuation services can serve to benefit you, speak to one of our highly qualified experts today.