8 Benefits of Using A Professional Plant and Equipment Valuation Service
Professional plant or machinery valuations determine an asset’s worth based on its remaining life, condition, market value, etc.
The process of plant valuation involves the assessment of the market value of the facilities and equipment being used for production, distribution, and other major tasks.
Experienced and skilled valuers conduct plant valuation with sufficient technical and market knowledge.
The benefits of using such a service are truly great, and in this article, we will discuss a few of these in detail, so stay with us till the end.
Benefits of Using a Professional Plant Valuation Service
1. Benefits for Buyers
Buyers need to know whether the plant they are about to invest in is worth their money or not. They can use a valuer’s help to ascertain these establishments’ health and efficiency before making a decision.
Before buying a plant, you must ensure the seller is asking the right price. To avoid overpaying, you can hire an independent valuer skilled in estimating the worth of machinery and plants.
It will ensure you only spend what is necessary and that the plant you buy meets all your needs.
2. Benefits for Selling
The plant valuation expert can look for comparables of recent sales of similar plants to determine the right price for a unit.
They use their keen insights into the market and machinery to develop the most accurate price for the plant. Allowances lead to the most accurate price for features unique to your plant.
Thus, sellers can come up with a fair and reasonable asking price. This increases the chances of quick sales in case you need the payment urgently.
3. Equipment Financing Analysis
To figure out the collateral value for the loan amount, equipment financiers often need a detailed plant and asset valuation report.
The machinery that comes under equipment financing includes IT, manufacturing, transportation, construction, etc.
A valuation report helps you conduct better equipment financing analysis, clearly showing how much money will be needed to fix damages and buy new parts.
4. Financial Reporting
A plant valuation might be needed for various reporting purposes such as accounting, auditing, balance sheets, and internal management. This report helps the auditors determine a plant’s actual worth and profit margins.
Financial reporting is an integral part of any business and with a professional plant valuation service, you can increase its accuracy as well as effectiveness.
This helps both the management team, as well as the shareholders, realize the positive and negative aspects of the plant and come up with better solutions to increase its performance as well as efficiency.
5. Asset Verification
Plant valuation can help you verify the existence of your assets and machinery against your inventory list. It lets you ensure everything is accounted for and nothing is missing.
This verification comes quite in handy when you need to decide about selling the plant. The buyers need everything that they paid for, and a plant valuation can help you satisfy these people.
Asset verification also helps you come up with the best market price for the plant since in this case, everything is accounted for.
6. Estimated Remaining Useful Life (ERUL)
This is another great benefit of plant valuation that makes it an absolute necessity. Let’s say you have a plant or a unit that has been used for a long time.
You might not even realize it needs to be repaired or even replaced until it is too late and the plant stops altogether.
This downtime can waste so much of your time and resources. With a plant valuation, you regularly get an update on the condition of your equipment.
This information helps you determine when to replace or repair a certain part or the whole plant. This way you can easily avoid major plant failures and keep things running smoothly for a long time.
7. Risk Management
A plant valuation sheds light on all the financial and logistical risks that can render your plant useless. This proactive approach makes it possible for you to stay on top of everything and resolve any issue that comes up at once.
Thus, a plant valuation service can help you avoid major risks that put your plant at a great disadvantage.
In a valuation report, you come across valuable information that you can use to plan your future moves. This keeps things running systematically and helps you avoid financial loss.
Also Read: Legal Compliance and Risk Management in Property Management
8. Economic Benefits in Terms of Fleet Growth
A plant valuation shows you how much capital is needed to grow your fleet of machinery and equipment and how you can take your operation to the next level.
This report tells you how much your plant costs and that means it also tells you how much you need to spend in order to establish a similar plant in some other location.
This helps you decide how much budget will be needed for the expansion and how you will proceed in the future. This way, a plant valuation can prove to be a very important growth factor for a business.
Also Read: Overview of Residential Property Valuation in Dubai
Final Words
You might need the services of a plant valuation agency for many reasons, and in the above section, we have listed just a few of these.
The plant valuation experts can help you determine how much your plant is worth based on its current market price and several other performance factors.
They can enable you to keep your plant up and running, and they can pinpoint all the major as well as minor faults that can create issues for you down the line.
So, hire a Plant and Machinery Valuation company, and we assure you that you will feel more confident and relaxed when buying or selling new machinery and other plant-related tools and equipment.
Land Sterling offers expert asset management services including plant and machinery valuations for commercial and industrial properties. Contact Land Sterling for expert Plant and Machinery Valuation services in Dubai, UAE.
