Benefits of getting a plant and machinery valuation
2023-07-11
Unlock the value of your commercial property
2023-08-07
Written by: Mandisa Ndlovu
1What is a plant and machinery valuation?
A plant and machinery valuation refers to establishing the current value of a company’s equipment, machinery, and other fixed assets used in the business. This valuation is carried out by certified professionals with the expertise and understanding to determine these assets' value.
2Why is it necessary to get a plant and machinery valuation?
Plant and machinery valuations are significant for several reasons, including assisting firms in obtaining funding, assessing risk, determining collateral value, making financial decisions, and providing correct asset values for accounting purposes.
3What factors influence the value of industrial assets such as plant and machinery?
Age and condition, equipment specifications, market demand and supply, are some of the factors that influence plant and machinery valuations.
4Can these valuations be used for insurance purposes?
Yes, these valuations assist businesses and insurance companies in determining the correct amount of insurance coverage for the assets. The valuation report indicates the asset’s current market value, allowing firms to accurately insure their equipment in the event of damage, theft, or other insured hazards.
5How often should plant and machinery valuations be conducted?
The frequency with which plant and machinery valuations are performed is determined by several factors, including industry standards, legal requirements, the specific demands of the business, and the nature of the assets. Plant and machinery valuations should be performed frequently to ensure that the valuations stay relevant and up to date.
