Equipment Appraisal Methods

AmerEquip International is a long-time supplier of process and packaging equipment. This equipment is ideal for those within the pharmaceutical, nutraceutical and other related industries. And to make sure this equipment is top-of-the-line, our appraisal methods for them is spot-on. We aim to fairly and accurately appraise any sort of used equipment that comes our way. And we put our name behind our work. So you can feel confident when you turn to use for any equipment or machinery we sell.

Methods of Valuation

There are a few different methods of valuation to determine the fair price of a piece of machinery.  When it comes down to it, there are three popular ways to determine the value of a piece of equipment through an appraisal. These three methods of valuation are:

  • The Cost Approach
  • The Direct Market or Sales Comparison Approach
  • The Income Approach

The Cost Approach is the starting point for many appraisals. This method is based upon the principle of substitution. Which means the maximum value of a property to a knowledgeable buyer would be the amount currently required to construct or purchase a new asset of equal utility. When the subject asset is not new, the current cost must be adjusted for all forms of depreciation as of the effective date of the appraisal.

The Direct Market or Sales Comparison Approach bases its value on the assumption that we can compare the price of the asset through the analysis of similar transactions in a secondary or used market. When we use this method, we adjust for differences in age, condition, capacity, utility, location, the date of the sale, the type of sale, and/or the costs of transportation, assembly and installation at a new site.

The Income Approach examines the earning capacity of the business assets being investigated. This method is the least common of the three when valuating machinery and equipment.

Learn More About Equipment Appraisal Methods

When it comes to equipment appraisal methods, it is always important to keep in mind that we may need to use multiple methods for accurate valuation. One methodology may not be enough. Also, there needs to be a level of trust between the seller and appraiser. We have years of experience utilizing these equipment appraisal methods. We offer a fair and objective opinion when it comes to all appraisals we complete.

We work with many different industries and help sell used equipment to those in need. This includes used pharmaceutical equipment, which offers users many different benefits including bundling and wrapping bottles and the use of blister packaging, which seals packaging items together. We also distribute used process equipment, which utilizes different fillers and mixers. Check out the full selection of equipment for the pharmaceutical industry.

For more information about getting an appraisal, please reach out to us today. We will happily answer any questions or concerns you may have regarding the equipment you need appraised. The number for our office is 845-628-8824. When you call, we can discuss our equipment appraisal methods with you. So you can feel comfortable with our process.