Machinery and Equipment Valuation

Bernard Agin, our managing partner, has been certified by the NEBB Institute to value machinery and equipment. While most businesses are valued utilizing and earnings or market approach in these difficult economic times the value of the “hard assets” may be the best basis to value your business. Machinery and equipment valuations are also important when applying for loans or other lines of credit. When a business is being valued for purposes of sale the value of the machinery and equipment which is used by the business as part of an ongoing venture can be crucial to establishing a sales price. For federal tax reporting the allocation of purchase price to fixed assets, as oppose to goodwill or other intangible assets, may have a major impact to both buyer and seller in terms of the after tax dollars received or paid for a business. The cost for a machinery and examination valuation is dependent on the nature and type of equipment being valued. Where groups of assets consist of desks, chairs and minor fixed assets we are often able to provide a reasonable estimate of these assets without extensive cost. In many instances we can rely on the business owner to provide the necessary information which can result in a “desk” valuation as opposed to a site visit. Desk valuations can often be utilized and can substantially reduce the cost of a machinery and equipment valuation.