Asset Appraisals 101

Asset appraisals can be understood as the process of determining the value of a given asset. Assets are defined as any resource that is owned by a business operation. Many of the assets Infinity Asset Solutions deals with are equipment assets – the machinery needed to ensure day-to-day operational needs are met.

 

In today’s blog, our goal is to break equipment appraisals down to basics by answering a few frequently asked questions.

 

Why are appraisals conducted?

 

The number one reason why equipment appraisals are performed is to determine its value. The reason why the owner of the asset may want to value their equipment assets can be for a number of reasons. Whether it’s liquidation, selling off surplus equipment, or simply for financial and accounting related purposes – getting down to the core of why business owners choose to appraise their assets will vary from business to business.

 

Are asset appraisals accurate?

 

Asset appraisals are educated opinions of what the value of a certain asset should be. These opinions are based on a defined set of factors, and should only be conducted by trained and experienced appraisers who know and understand the various operations and business needs of your given industry.

 

What factors do appraisers take into consideration through the valuation process?

 

As mentioned above, there are a number of factors that appraisers will take into consideration during the valuation process. There aren’t pre-determined specific factor parameters that span across all industries and equipment asset types – which is why it is of the utmost importance that when seeking an appraisal, to find an experienced and reputable equipment appraiser you can rely on.

 

With that being said, there are a few over-arching factors that are taken into consideration through the appraisal process. Quality and functionality, usability and performance, and pre-used complications are all factors that are considered through the valuation process. To learn more about them, check out our previous blog “Everything You Need to Know about Equipment Appraisals” to get started.

 

Seeking a reputable equipment appraiser for your business assets?

 

Look no further than Infinity Asset Solutions! We are reputable asset appraisers that offer experience working with small and large business operations across a large range of industries. To learn more about our appraisal services, call us today! We’d be happy to help.