As a business owner, knowing the market value of your machinery and equipment is an important aspect of your business.
In some cases, knowing the value of equipment or machinery is quite easy - when those items are used by many businesses across many industries -- ie: a photocopier. But what about that specialized piece of equipment you use in your business in the manufacturing or processing in your business. This piece of equipment or machinery may have been built specifically for you, and definitely for your industry so how do you know its worth? And, why do you need to know its worth?
Let's start with the second question:
Why You Need to Know the Value of Your Equipment and Machinery
There are a multitude of reasons for knowing what your equipment is worth including:
- selling your business
Operating a business is complex at the best of times, but if you are looking to sell your equipment, to purchase another piece, if you are refinancing, or maybe simply require the appraisal for insurance purposes, your equipment appraisal company will need to know the reason the appraisal is required in order to provide the right type of appraisal for you.
Often the type of appraisal falls into 3 categories:
- Buying or selling of Equipment/Machinery
- Continued Use