Determining the appropriate value of technical fixed assets requires technical and commercial knowledge. Particularly in the case of special machinery and complex plants that have been assembled for an individual production process, the determination of value is only possible with special knowledge. In cooperation with experienced engineers and business people, the weyer gruppe prepares meaningful value appraisals for machinery and technical equipment. Tailored to your needs, we determine the current market value, fair market value or replacement value of machinery or process plants according to recognised standardised procedures. As a result, you receive a fact-based foundation for the valuation of your fixed assets, e.g. with regard to hidden reserves, and gain clarity for your further planning.
- When preparing the balance sheet
- For company acquisitions/sales
- When succession must be regulated
- In the event of a reclassification of fixed assets under company law
- In the case of a financing restructuring
The determination of the tangible current value (also current value) differs with regard to the time of the determination and the purpose of the determination. The (tangible) current value (“book value”) of depreciable fixed assets (in this case machinery and technical equipment) results from the acquisition value plus increases in value due to basic maintenance, if necessary also repairs, renovations or extensions, minus depreciation. At the end of the depreciation period, the fixed assets are usually valued at EUR 1. The (tangible) current valuein insurance is usually the current new value of a plant or machine minus a deduction for age, wear and tear and, if applicable, use.
The market value is the value at which a machine or plant is traded on the open market. In the case of used special machines or complex systems that have been assembled specifically for production, it is usually not possible to determine a market value from secondary markets (purchase price databases, trade exchanges, online portals, etc.).
The replacement (time) value includes the costs that have to be spent to replace a machine or technical system in the same condition. The effort required to determine the replacement value depends on the complexity of a plant. Particularly for special machines and complex technical plants, a professionally sound technical planning including cost estimation would be required for the value determination.
Since even a depreciated machine or plant can still be economically usable, its actual value is not equal to “zero” even after depreciation has taken place. Machinery and equipment may also actually have a higher value during the depreciation period than the current book value indicates. This additional value represents a hidden reserve. Depending on the situation, it may be necessary or useful to identify this hidden reserve through a machinery or equipment valuation.
As a rule, our machinery and equipment valuation is carried out according to the (tangible) current value method. First of all, the essential data, such as
- Acquisition price
- Date of acquisition
- Condition of the machine or plant with regard to wear
- Repairs and overhauls in the past
- Accessories available
- Extensions and adaptations
- Manufacturing quality standard
included. In the case of technical installations, the asset inventory is additionally broken down according to relevance for the valuation. This means that the level of detail of the examination is selected according to the importance of a part of the plant for the overall value. Normally, an inspection of the machine or plant to be valued is also carried out. In exceptional cases, the valuation can also be carried out on the basis of visual material and the consideration of the actual operating hours. In addition to the physical condition of the machines and systems, their integration into the overall production process and the development of the state of the art since their acquisition are also taken into account in the assessment. Finally, the overall assessment is carried out on a defined assessment date and is documented in a comprehensible and traceable manner and provided with photographic documentation.
In the case of transaction and financing issues, company valuations and restructurings, our core service of valuation can be supplemented by a stocktaking or commercial analyses. We provide these services together with our partner company, BDO AG Wirtschaftsprüfungsgesellschaft.
These include in particular:
- Physical recording of the assets
- Preparation of fixed asset data before valuation
- Operational analyses (HSSE compliance with requirements from permits for environmental protection, fire protection, occupational safety, etc.)
- Business valuation (determination of the value of intangible assets, earnings values of companies)
- Due diligence, M&A, financing and restructuring advice
- You receive a sound basis for decision-making for your further planning.
- The combination of technical and economic expertise provides you with a realistic valuation.
- Fast results: Start and completion of the valuation is often possible within a few days.
- We handle the processing independently and discreetly.
- The report preparation is tailored to the needs of the client (e.g. prospective buyers, banks, shareholders).
- The valuation is tailor-made by prior agreement of the intended purpose, the valuation approach appropriate for it and the desired level of detail.
Our expert reports are based on more than 40 years of experience in the planning, commissioning and technical and commercial evaluation of machinery and equipment. Together with our partners from BDO AG Wirtschaftsprüfungsgesellschaft, we are also able to carry out comprehensive commercial valuations.