Tangible
Asset Valuations
Whether the valuation of tangible assets is for setting up new fixed assets records in an
allocation of purchase price or for determining the value of assets for insurable value
purposes, AGI provides the client with the maximum detail to accomplish the established
goals.
Valuing tangible fixed assets is a time-consuming and research-extensive process. While some assets are general purpose in nature, many assets have unique values and unique lives relative to very specific industries and uses within the industry. Operating conditions, maintenance, repairs, obsolescence, market values, and estimated useful lives play a key role in valuing tangible fixed assets. Identical assets used in different industries may have a wide range of value based upon any one of the aforementioned situations.
The staff at AGI maintains a close watch on the markets and values of thousands of unique assets. Whether the valuation is of a state-of-the-art phone system, a stamping press, a computer, or a theme park ride, AGI monitors the pulse of the market.
Some firms base their studies on trend factors without actually looking at the assets. Oftentimes non-engineering-type personnel are used to value machinery and equipment based upon this trending approach. Trend factors are reasonably accurate over a very short time period only. And, trend factors do not accurately take into account maintenance, repairs, wear and tear, and obsolescence. In addition, if the asset is not actually observed in place, the values may not take into account assets that have been retired but not disposed of, or assets that are cannibalized or even self-constructed.
Whether the asset is a building, a parcel of land, a piece of process machinery, office furniture, technological equipment, a plane, a ship, or a computer, AGI will assign the proper values to the asset using the most supportable methodology and consultant available. In some cases, some of the assets are so specialized in nature that we utilize the services of industry specialists to assist us in arriving at a fair value, all of which is included in our fee structure.
Representative Assignments: