How We Implement Your Plant And Machinery Valuation

Category: Plant And Machinery Valuation     Date: Jul 8, 2017

Are you curious about how to implement your plant and machinery valuation? In every business owner's life there is a time that comes where they need to reconsider where they stand in their business world and what new can be done for the further. There may be time where you have thought of selling your business or hand half the business to someone else and even to merge up with someone as a partnership. While doing so, you need to know about your business worth so that the person buying it or buying part of it will know what they are in for. The same goes for you if you are planning to buy  or invest in a business.

You require to follow few procedures when you are getting valued. Firstly, one is full disclosure. It may be hard to face the truth about your assets, you require to let your valuer know exactly what is going on regarding the machinery. You are required to give your valuer the records that how other machinery are performing in the market.

The most important think that the valuer looks into while valuing the plant and machinery is the time of purchased which will help the consultant to evaluate how much they have gone down the market. In order to calculate it, a formula of deflation will be used. To determine how much money the asset has lost over the years which will help the valuers to determine the present value of the assets that they are assessing. A good idea to ensure that you do not lose too much of money on the sale of your assets that you maintain them properly. If your machinery has been given regular service will be able to produce more value that what it would be if you had let the machine degrade in value. 

Besides the using the formula to calculate the performance of the asset, the market value is also looked at. Therefore it can be applied to manufacturing plant if this is more specified to properties. In relation to the financial performance of other plants it nature will also have the impact how much the value it can produce.

Getting a qualified valuer to do you the job is the best thing to know the value of your company.  You require a certificate of proof that your business has been correctly valued and is absolutely worth the amount that is designated. Without this, you neither can sell any assets of yours nor can you qualify for insurance on any of them.

 

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FAQ

    The provisions of the Valuation Rules are applicable only when,
  • (i) consideration not in money terms which is either wholly or partly;
  • (ii) parties are relevant or supply by any stated category of supplier; and
  • (iii) transaction value is not reliable to be declared.
We certainly value quality over speed when it comes to something as important as a valuation. Our standard answer to how fast we can provide a valuation is ten (10) business days from when we receive the information we need from the client. We can get it done faster if we are told a specific date we need to hit (e.g. upcoming board meeting). The big caveat in there that many clients do not think about is the phrase, “from when we receive the information we need from the client.” Most clients have the information we request readily available. However, other clients have the information spread between various executives and their outside counsel. So if time is of the essence, getting everything together can speed things up tremendously.
This is dependent on the individual company and can vary widely depending on the valuation service provider. There are valuation service providers out there that do not have our benefits of scale and technology. They also likely do not benefit from the excellent partners that we have. By working with outsourced CFO services, cap table management services, and other partners we are able to cut significant time out of the process that most providers have to spend in the gathering and structuring of data. So although the price may vary depending on the individual situation, almost certainly companies will get the best possible price/value combination by working with Greener Equity either through our partners or directly.
The valuation process is dependent on the situation of the individual company. The general summary is that once a valuation service provider is engaged, the provider will need organizational, financial, and capital structure due diligence that most companies have fairly available without too much trouble. The most difficult tasks are typically either a long-term forecast of financial results or for very early stage companies an analysis of the cost to recreate the IP the company has created.
By asking some simple questions you can hone in on the right valuation date for your company and specific set of circumstances.
How soon do you need the valuation?
What is the most recent period for which you can provide financials?
If you are funding the business with venture investments, when did you close your most recent funding round?
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