Tangible Personal Propoerty Services
The valuation of machinery and equipment is becoming increasingly complex. As a participant in a world economy, domestic product manufacturers are acquiring their machinery and equipment from foreign markets. Multi-national manufacturers with operations in North America, South America and Asia, for example, may all be utilizing machinery and equipment sourced from German manufacturers.
There are a number of nuances affecting the value of machinery and equipment which traditional valuation methodologies may fail to take into account. Two assets of the same type, same age, same condition and manufactured by the same manufacturer could have distinctly different values due to currency exchange rates, local economic conditions, supply-demand relationships and other factors which often affect value. The only way in which these assets can be properly valued is if the valuation expert has garnered sufficient expertise in conducting valuations of machinery and equipment on an international scale.
Our machinery and equipment valuation experts have applied their valuation expertise in virtually every major world market. Through years of involvement in our international engagements, they have built relationships with both foreign and domestic equipment manufacturers, manufacturer representatives, distributors and other supply chain organizations.
CVA conducts tangible asset valuations for:
- Asset Based Financing and Leasing
- Purchase Price Allocations
- Insurance Risk Management Studies
- Sale/Lease Back Transactions
- Asset Management Property Records Studies
- Ad Valorem Tax Studies
- Cost Segregation Analysis
Companies rely upon the expertise of our staff of equipment valuation specialists for purposes of complying with International Financial Reporting Standards and US Financial Accounting Standards, the creation of a fixed asset record system, ascertaining insurance coverage levels, sale/leaseback transactions, ad valorem tax appeals and specialized studies such as equipment relocation cost analyses and asset disposition services. Lenders call upon our firm in connection with their ongoing collateral evaluation activities where Orderly Liquidation Values and Forced Liquidation Values become paramount considerations in their evaluation of credit risk.
CVA has significant experience in performing cost segregation studies for newly constructed properties. We employee individuals with the capacity to read and understand both blue prints and cost information allowing them to identify shorter-lived assets which qualify for 5 year, 7 year and 15 year depreciation lives. Most accounting firms do not have the staff with the engineering background to perform this type of valuation. Accurately accounting for the costs associated with any new building can maximize the financial performance of the company by insuring the assets are accounted for and depreciated properly.