Plant and Machinery Valuation and Advisory

Valuation and Advisory of Plant and Machinery is required in determining the best outcome in terms of productivity for your individual business’s bottom line.  Plant and Machinery is vital to ensure a business’s cash flow is sustainable.

Onsite valuations, Removal of Plant and Machinery valuations, Auction valuations, ‘In-Use’ valuations and Repossession/Insolvency valuations all require different approaches when it comes to the assessment of Plant, Machinery and Equipment assets.

Valuations and Advisory include a full stock take of the items to be assessed with reference to model type, serial numbers, age and specific features of the asset.

Machinery Valuation Definitions (with Reference to the ASA and GANTPMV)

Plant, Machinery and Equipment can be broadly divided into five main categories:

  • Plant and Machinery: may include production lines or delivery trucks, onsite forklifts etc, that may have been installed or GantPMV Plant and Machinery Valuation and Advisoryused wholly in connection with the occupier’s industrial, commercial processes and agricultural operations;
  • Equipment: includes furniture and furnishings (doctor’s surgery etc.), tenant’s fixtures and fittings (shop fit-outs), stock and loose items/tools among others;
  • Agricultural: items such as water resources, fencing, farming and machinery sheds, silo’s and storage equipment, farming machinery (cropping and livestock) and on-site processing plants (nut, aquaculture and grain plants etc);
  • Factory: production line plants and industrial buildings that are highly integrated, fully built-in with the enclosed process of the out-put line or equipment they help to support and structures of a specialised nature;
  • Forced Liquidation Value (‘FLV’): The estimated gross amount of money that could typically be realised from a properly advertised and conducted public auction, where all assets noted herein are sold together, with a seller who is compelled to sell with a sense of urgency on an ‘As-Is’, on location basis, ‘As At’ the date of sale.
  • Orderly Liquidation Value (‘OLV’): The Orderly Liquidation Value (OLV) is typically included in an appraisal of hard tangible assets (i.e., equipment). It is an estimate of the gross amount that the tangible assets would fetch in an auction-style liquidation with the seller needing to sell the assets on an “as-is, where-is” basis.