The types of property valuation services that exist in NSW are wide-ranging. Among them are plant and equipment valuations; a crucial aspect of many industries including manufacturing, construction, and agriculture. But what are property valuation services?
A plant and equipment valuation in NSW is an independent assessment of property, plant, and equipment (PP&E) by a qualified professional. Only Certified Practising Valuers (CPV) of Plant and Machinery (P&M) have the tools and skills needed to perform accurate PP&E valuations.
Valuers are registered with the Australian Property Institute (API) and closely follow international valuation standards to ensure a consistently high level of accuracy and quality is achieved. These property specialists consider several different internal and external factors when preparing the reports.
A plant and equipment valuation is the most reliable method of determining the fair market value of various assets such as machinery, tools, vehicles, and all sorts of equipment.
The importance of accurate valuations should never be underestimated. With a clear understanding of how much your assets and machinery are worth, owners, investors, and managers all stand to benefit.
The benefits of property valuation services
There are plenty of reasons to get a plant and equipment valuation and the benefits tend to outweigh the costs.
A few of the main reasons companies get PP&E valuations are listed below:
Financial reporting
The value of plant and equipment is an important part of an organisation’s balance sheet. An independent valuation helps guarantee financial statements that are accurate. With accurate financial reporting, stakeholders can make educated financial decisions.
Asset management
Valuations provide owners, investors, and managers with a clear understanding of an asset’s value, depreciation rate, replacement cost, and remaining useful lifespan. This, of course, leads to better asset management as companies can make informed decisions about when to sell or dispose of an asset.
Insurance claims
A plant and equipment valuation can assist in insurance claims as there will be clearly defined value for whatever is stolen, lost, or damaged. With accurate valuations, companies can make sure they’re getting the appropriate coverage and just insurance payout.
Strategic planning
The comprehensive nature of property valuation services allows stakeholders to get a clear understanding of value across many different aspects of the business. With that, they can minimise risk and maximise strengths through careful strategic planning.
Mergers and acquisitions
If a company is going through a merger or acquisition, a valuation of its equipment and assets is necessary prior to the conversion. The value of the assets helps owners determine what the value of the newly formed company will be.
Pre-sale guidance
An independent valuation provides allows owners to make informed decisions regarding the potential sale of assets such as equipment, machinery, and vehicles. Owners can get a clear idea of how much they’re likely to make from an asset's sale.
Getting a property valuation for plant and equipment
With the basics of valuations covered, you may be wondering how to go about getting a plant and equipment valuation. The following steps can give you guidance going forward:
- First and foremost, you’ll need to find an organisation with uniquely qualified experts who have been trained to assess plant and equipment. This means you need to find a Certified Practising Valuer of Plant and Machinery to assist.
- The next step is to ask about experience. Ideally, you will want a firm with valuers who have vast experience in the valuation industry. When valuers have a history of preparing accurate valuation reports, the process is likely to be swift and reliable.
- You should also be sure to check reviews and testimonials. Looking over what past clients are saying will give you a good idea of the type of service you’re going to get.
- Last but not least, requesting a quote can give you an outline of the probable costs. You can then compare costs between firms and find one that suits your circumstances and budget.
By following all of the above steps, you can find trusted and experienced valuers who can provide precise plant and equipment valuations.
In conclusion
A plant and equipment valuation is a crucial service for anyone who needs to find the value of their assets, machinery, or equipment. Valuers apply their specialised insight and unique qualifications to prepare precise and reliable valuation reports.
Only Certified Practising Valuers of Plant and Machinery are qualified to prepare these reports. Valuers are often vastly experienced and have a history of spearheading precise plant and equipment valuations.
There is a wide range of reasons for companies to get a valuation service. Whether you need help with an insurance claim or guidance for strategic planning, a valuation can serve to be hugely beneficial.
Valuers use one or a combination of trusted methodologies when preparing reports. By following international valuation standards and approaching every task with the highest level of due diligence, they can reach accurate final figures.
For more information on plant and equipment valuation services in NSW, feel free to give us a call today. Our PP&E specialists are more than happy to assist.