What is asset appraisal? Is it something that you can benefit from? We go into a little more detail so that you can understand the bigger picture.
What Is Asset Appraisal And Who Can Benefit From It?
Asset valuation is something that GoIndustry DoveBid specialise in. It is a process of finding a fair market value for a particular asset. It could be anything from buildings or property to equipment, stocks to bonds. Asset valuations can even be made on intangible assets such as trademarks and brands. Whatever the asset is, it has a value and an asset appraisal will determine what that value is.
The value is measured using a number of different metrics that include both subjective and objective measurements. These include, but are not limited to, book values, valuation models, cash flow analysis, pricing models and more.
Asset Appraisal On Tangible Assets
When we speak about tangible assets, we are referring to assets that are physical in nature and can be seen. They might be resources that have been purchased to help produce a range of products or deliver on the business’s services. There are a number of different tangible assets, such as land, buildings, company cars, computers and machinery, stock or products, cash etc.
Appraising tangible assets is done using a balance sheet. The intangible and tangible assets would be categorised and then the intangible assets would be deducted from the total value of assets. The total value of liabilities is then deducted from what is left, which leaves you with the value of the tangible assets.
Asset Appraisal On Intangible Assets
Intangible assets are valued in much the same way as tangible assets using a balance sheet. Intangible assets are not physical in form, but they still hold value for the business. Things such as company logos and corporate identities are intangible assets, as are franchises, trademarks, and patents. The same process of asset appraisal is carried out whereby tangible and intangible assets are divided and categorised.
The Benefits Of A Professional Asset Appraisal
Proper asset appraisal is of great benefit to the business for a number of reasons such as:
• To ensure that an appropriate value is being applied to an asset
• When applying for credit for the business, the assets can be used as collateral
• If the business is applying for credit to obtain new machinery, the machinery can be properly valued before the credit application is submitted
• When a business is being audited, the proper value of assets can be submitted and reported on
• Future business taxes will be made that much easier and accurate having all the relevant information at hand
• Asset values can help the business identify what their future earning potential will be
By making use of the services of an experienced and professional asset appraiser, the business is guaranteed to receive an accurate and credible valuation. This also avoids miscalculations and delays in approvals.
Find out more about the process or asset appraisal and what is involved by speaking to one of our trained consultants.