For owners, investors and managers of any business, independent valuation reports can be beneficial. They allow you to truly understand the market value of your fixed assets. But first, you’re going to need to get some help from a qualified plant and equipment expert.
Plant and equipment valuers in New South Wales can assist anyone in agriculture, construction, manufacturing and many more industries.
Only Certified Practising Valuers (CPV) of Plant & Machinery (P&M) can prepare legally-accepted PP&E valuation reports. These independent valuation reports are worthwhile in many circumstances, but they are not a free service.
To get a P&E valuation, you will need to pay for the expertise of a plant and equipment specialist. P&E valuers have been trained to prepare precise and comprehensive valuation reports for a wide range of plant, equipment and machinery.
The costs can vary, and you will need to make sure you have the budget for the service you require.
The price of plant and equipment valuations
So, how much do plant and equipment valuations typically cost?
There is no one set cost when it comes to P&E valuations. Prices will vary depending on a few different factors. These include:
- The type of P&E report.
- The number of assets.
- The purpose of the report.
- The type of assets being assessed.
- The experience of the valuers.
Requesting a quote will give you a much clearer idea of the probable costs for the P&E valuation that you need.
Getting a quote from a few different organisations will allow you to compare costs and choose a service suitable for your set budget. The more complex and extensive a valuation is, the more it is likelier to cost.
The type of report
Are you getting an asset valuation, a machinery valuation or a full-service plant and equipment valuation? Different valuations have different report types.
A long-form valuation report will generally cost more than a short-form valuation report as it involves a more intensive examination.
The number of assets
Of course, the more assets you need valuations for, the higher the total price is going to be. A single-asset valuation will be much cheaper than a full-service valuation that covers every asset of the organisation.
The purpose of the report
The reason you’re getting a valuation will determine the scope of the report. A valuer will know exactly what details to include based on your circumstances.
The more detailed and complex a report is, the more it is going to cost. Often, valuations for family law or deceased estates purposes will include far more detail than short-form pre-sale valuations.
The type of asset
As assets can range from vehicles to complex machinery, the type of asset being examined will affect the cost of a report.
Valuations for custom-made machinery will likely cost more than a valuation for a commonly used tangible asset.
The experience of the valuer
A more experienced valuer offers a more reliable and precise valuation report. As such, acquiring the services of a vastly experienced professional will cost more than using someone relatively new to the industry.
What information do valuers need to provide a quote?
Getting a quote is your most reliable way of planning your valuation budget. For valuers to provide an accurate quote, they will need all of the relevant information.
Some key information valuers need include:
Size of the company
Valuers will need to know whether you’re operating from a small, medium or large-sized corporation. Larger organisations often involve more comprehensive inspections and calculations.
Industry
A plant and equipment valuation can be for any organisation operating in manufacturing, logistics, distribution, production, agriculture and more.
Location
As valuers need to travel to perform inspections of the plant and equipment, they will need this information when preparing a quote. Operating from a more isolated area can lead to a higher valuation cost.
The purpose of the report
As the purpose of the report impacts the cost, valuers need to know exactly what they will be preparing before providing you with a quote.
Asset register
This is a document all businesses should have. It is a complete list of an entity's assets which is crucial for determining the costs of a full plant and equipment valuation. A valuer's service can also assist in the creation of an asset register if one does not exist already.
Final word
A plant and equipment valuation is the most reliable method of finding the market value for property, plant and equipment. Only Certified Practising Valuers (CPV) of Plant and Machinery (P&M) can prepare accurate valuation reports.
The cost of a P&E valuation will depend on a few different factors. The type of report, size of the property, purpose of the report, type of assets and experience of the valuer will all affect the final cost.
The most reliable way to find out how much you’re likely to pay is to request a quote from a trusted firm. Valuers will need to know the size, location, industry, and the reason for the valuation to provide a reliable quote.
For more information on the costs of P&E valuations in NSW, don’t hesitate to reach out. One of our experts would be happy to assist.