What’s This Stuff Actually Worth?Valuation Valuing
Posted by Jennifer Hendrickson on
By now, you probably know that Murphy Business of Cape Girardeau helps people value, buy, and sell businesses. You should also know that we assist business owners with the valuation of their business’s machinery and equipment (M&E). So you’re probably thinking, “Why would I need that service? I have a good idea what all my M&E is worth. I know what I paid for it and I know where it is on the depreciation schedule, isn’t that enough?” For your everyday accounting purposes, yes - that’s enough. The depreciation schedules are not enough when you need to know exactly what your equipment is actually worth at this very moment.
Some reasons why you might need to have your machinery and equipment appraised:
- Business owners may need to have an M&E appraisal to help secure financing. It’s important to know that the Small Business Administration (SBA) requires M&E appraisals in all areas where “the valuation of fixed assets is greater than their depreciated value.”
- Buying into a business or buying out a partner.
- Accountants need an M&E appraisal when helping their clients convert from a C-Corp to an S-Corp.
- Attorneys frequently require certified appraisals for estate, divorce and litigation purposes.
Obviously, the manufacturing industries have significant amounts of machinery and equipment. So your business isn’t manufacturing: Should you keep reading? Consider the equipment in a medical office: Examination equipment, radiology machinery, surgical tools, and a host of other equipment all need to be appraised when the practice sells, or when partners buy in and cash out. A restaurant can have tens of thousands of dollars in equipment including ovens, food processors, refrigerators, and dishwashers. Construction companies have everything from earth-movers to concrete finishers to cranes and everything in between. Agriculture, Transportation, Printing, Machine Shops, Auto Repair, Textile, and Materials Handling are all examples of the equipment categories we cover. The list goes on and on.
Examples of equipment categories include agriculture, aircraft, boats, construction, food processing, machine tools, material handling, medical / dental, printing, restaurant, textile and trucks / trailers.
When you need to know what your machinery and equipment is worth, contact us for an accurate appraisal. Our appraisers are certified by the National Equipment and Business Builders Institute (NEBB) and are authorized to use the professional designation of Certified Equipment and Equipment Appraisers (CMEA).