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Professional Machine Evaluation is a must do act in metalworking industry

Different factors, such as liquidation value, going concern value, and/or installation expenses, influence how much machinery and equipment Asset-Trade are worth compared to other types of assets.

A professional machinery and equipment assessor uses a variety of terms and methods to arrive at an assessment of worth.

To arrive at an opinion of value, the appraiser must select one of three techniques for appraising assets:

  • Fair market value (FMV)
  • Fair value (ASC 820)
  • Fair value (ASC 820) (Statutory).

Therefore, an appraiser must know exactly how a client intends to use their report. For a "quality" Asset-Trade appraisal, the definition of value must be properly applied to the purpose of the appraisal. Providers, financial institutions, and government authorities all conduct audits of various kinds of organisations.

The cost of installation is the main difference between a Asset-Trade appraisal and other tangible asset appraisals. The installation costs of certain assets might be more expensive than the equipment or gear themselves. As a result, the enterprise's asset worth will not be represented by transactions involving secondhand market machinery.

Machine evaluation is even faster and safer

Machines that are safe not only keep people and the environment safer but also help manufacturers and users compete more effectively by lowering their costs.

Valuation reports are useful when it comes to accurately value your utilised equipment and systems.

Good to know

Negotiations for purchase are hastened by an appraisal.

The complete report and the brief report are two distinct things.

An appraisal report is a document that summarises the results of an evaluation.

Comprehensive reports and brief reports are distinguished

The market value of a property is the result of an appraisal.

For second hand machines and systems, the market value (market value) is the price that a buyer can expect to get for them based on their location and the nature of their use (valuation date).

When establishing a product's market worth, it's important to keep out any exceptional or subjective considerations.

The market value, on the other hand, is not a mathematically exact amount, but rather an estimate based on data. As a result, various experts may come to different conclusions.

An in-depth evaluation report or a concise evaluation report.


For the sale of new or new machines and equipment, a comprehensive report is highly recommended. This report can be understood by outsiders and unqualified individuals due to its comprehensive presentation, and it is suitable for use in court and recognised by banks and authorities.


Shorter reports are more expensive than longer ones because of their shorter length. It's also common for a review to take many weeks for the reviewer to complete.

Valuation Methods

In appraisal analysis, there are three recognised methodologies for measuring value:

Many evaluations begin with the Cost Approach, which is based on the substitution principle, which states that the highest worth of a property to an informed buyer would be the amount currently required to build or purchase a new asset of similar utility. As of the appraised date, the current cost of an asset that is not brand new must be reduced to account for any kind of depreciation.

It is assumed that the value of an asset can be determined by comparing similar or identical items sold in a secondary or used market and adjusting for factors such as age, condition and utility as well as location and date of sale.

Although it can be quite beneficial, the Income Approach is the least prevalent way of valuing specific items of machinery and equipment.

Remember that a valid judgement of value cannot always be produced through the use of a single methodology. That's why it's important to use these approaches wisely, as well as to have a professional appraiser who is objective and equipped to do the job.

Machinery valuation Full evaluation or brief evaluation?

Market value estimates are included in all reports.

Most key value-determining criteria are taken into consideration in brief reports (desktop evaluation).


Asset-Trade assists you by estimating the correct asset values for your machines

After our skilled personnel have examined your plant and machinery, you will receive an expert appraisal.

The report is required for the selling of your machinery. We specialise in metalworking, plastics processing, food and beverage, printing machinery, woodworking, and plant utility.

Do you want to know how much your machine is worth? Please contact us.