Plant, Machinery and Equipment
The valuation of Plant, Machinery and Equipment (PME) is often highly complex and requires a strong understanding of the industry in which the plant operates. The ASA examinations are highly regarded as setting the standard for PME valuations and all valuations are based on these standards.
There are a range of factors that need to be taken into account when considering PME valuations. It is essential to identify the ownership of PME which can be leased or under some finance arrangement and this needs to be established. Additionally the age, condition, type, model etc of the PME also needs to be considered and an Age / Life formula applied to calculate the remaining useful life (RUL). Obsolescence factors such as physical depreciation (Age / Life), technological and economic impacts also need to be assessed.
For quarries we assess the capacity of the quarry plant and apply age life formulas and determine the quarry output and then apply obsolescence allowances for any over capacity. No investor is going to pay for a plant that has a capacity which is significantly in excess of the market output. This obsolescence factor needs to be reflected within the overall assessment of the PME, and is rarely considered by operators often to their detriment.
We have carried out numerous quarry plant valuations both fixed and mobile, pre mixed concrete plants and asphalt plants but also specialist vehicles, production lines, containers and other manufacturing equipment. There are a range of specialist PME valuers who deal with particular assets, and where we do not have the expertise, we are able to recommend suitable experienced valuers to cater for the majority of PME assets. So if we can't help, we know someone who can.
