What does a valuation of machinery and equipment cost?
No machine park is like the other and so pricing is always individual and depends on the effort involved. The expenditure in turn depends on the size and type of the machinery and the other operating equipment.
A huge single piece of equipment, such as a continuous kiln for firing bricks, is naturally valued more quickly than 50 lathes and milling machines – at the same value!
However, we can often make a very rough estimate of where the journey is headed during an initial telephone call. After an initial visit to your company – usually free of charge – we will make you a binding offer, which is usually capped. This gives you security.
Travel and accommodation costs may be added to this.
How does the evaluation of equipment work in practice?
First of all, we come to you and take a look at your business.
Then we clarify the exact task, i.e. the goal of the assessment. On this basis, we estimate the scope and costs and tell you the price. We usually agree on an upper price limit so that you do not experience any surprises.
After placing the order, we arrange an inspection appointment, where we physically record all machines and technical equipment, if necessary – arranged according to rooms and business purpose. We inform you about the necessary documents and information we require.
After receipt of the documents, the machines are appraised. The appraisal is usually ready within 6-8 weeks.
You will then receive a first draft of the appraisal for review. If there are any requests for changes, we discuss these together before we “stamp” your appraisal.
You will receive a digital copy – on request also in paper form.
What documents are required for an evaluation?
Actually none in the run-up to an assessment – we like to get a picture on site first! By the way, the initial inspection to prepare an offer is generally free of charge.
In the course of the valuation, we then require a copy of your asset accounting, acquisition data and acquisition values of the machinery and equipment. We will request further documents, such as leasing contracts or machine installation plans, if required.
Why do you need a valuation of equipment and machinery?
There are many occasions for an assessment of your machinery:
- the determination of the sum insured,
- to determine the mortgage lending value for loans and financing,
- to quantify hidden reserves
- to improve financial ratios
- for the tax office in the case of intra-group sales of machinery
- for transactions between private and business assets
- to determine opening balance sheet values
- for company takeovers or transfers (M & A) within the framework of due diligence
- in the case of company successions (inheritances, gifts, sales)
- when companies divide
- for compensation and settlement payments
A valuation can serve many purposes at the same time. We will advise you on this in any case when you place an order.
What kind of appraisals do you prepare?
- New value appraisals, for example for insurance sums
- Fair value appraisals, for example for tax purposes
- Market value appraisals, for example for due diligence purposes
- Compensation appraisals for business relocations
- Damage appraisals as part of the expert procedure.
- Mixed forms
Before placing an order, we clarify with you exactly what the purpose of the valuation is and which type of appraisal is to be prepared with which values.
Which values are determined?
We determine new values, current values, market values, fair market value, net asset value and liquidation values for machinery, plant and operating equipment. Which values you need depends on the objective and will be clarified with you in advance.
Incidentally, there are a large number of different value terms, the delimitation and definition of which is often inconsistent. We have compiled the most important terms in a clear glossary (in German).
Are your appraisals publicly recognised?
The EU certification as an expert for the assessment of machinery and technical equipment (DIN EN ISO / IEC 17024) as well as our appraisals are recognised by all government agencies, insurance companies, banks, courts and tax offices, internationally.
Is EU certification equivalent to public appointment?
The public appointment and swearing-in is carried out by the Chambers of Commerce and Crafts.
EU certification is carried out by the German Accreditation Body (or by institutes accredited by it).
Both procedures require proof of special expertise and professional liability insurance. Both the professional qualification and the personal suitability must be proven regularly (among other things through further training measures and examinations).
Since the publicly appointed and sworn expert is a highly respected qualification in Germany but less well known internationally, the EU certification is, so to speak, the internationally known counterpart.
How can I tell if the sum insured for my machinery and equipment is correct?
By the fact that you have an expert opinion stamped and signed by a qualified expert!
But seriously – due to the insurance law demarcations between building and furnishings alone (which do not always follow common sense), it is hardly possible for the non-specialist to correctly estimate the sum insured. That’s why we do it and are liable for it.
Whereas our professional liability has never been claimed – much to the delight of our insurer!
Here you will find our checklist, which will help you to make an initial assessment.
How often must the sum insured for machinery and equipment be reviewed?
It depends on how well the additions and disposals are maintained after an initial valuation. If these are added to the sum insured with correct reset values, then you can easily get by for five years without a new complete valuation – under certain circumstances even up to ten years.
By the way: As an additional service for our clients, we take over the annual maintenance of the additions and disposals for a very small fee. In doing so, we draw on our own database, which has been built up over many decades. Our value supplements are recognised by the insurers.
Who is responsible for the correct sum insured?
In principle, the policyholder – i.e. you as a company – is always responsible for the sum insured.
Under certain circumstances, your insurance broker could also be liable.
However, if you have commissioned us to determine your sum insured, WE assume responsibility for your sum insured!
Of course, we have both business and professional liability insurance just in case. But we have never needed it. Guess why!
Do I even need the exact sum insured if I have agreed an underinsurance waiver?
A precise sum insured for your machinery is usually the best thing to do from a risk/cost point of view.
A sum insured that is too high (overinsurance) quickly costs a lot of money, especially in times of rising insurance premiums.
A sum insured that is too low (underinsurance) is a risk. Even with a waiver of underinsurance, you cannot eliminate it 100% and must expect higher premiums.
We have explained the topic here in detail and with numerical examples.
In any case, you should consult your insurance broker thoroughly about the costs and risks and consider an insurance valuation, for example by us.
Can I directly contact an expert in case of damage to my machines?
Yes – after you have reported the damage to your insurer and, if applicable, your insurance broker!
If you need an expert witness in the context of an expert procedure, feel free to call us.
In addition to our own expertise, we can often help you with experts from other disciplines.
What is an expert procedure?
The expert procedure is a very efficient, reliable and proven instrument for settling property damage in companies. It makes sense to familiarise yourself with the procedures and practices “just in case”.
We have therefore summarised everything you need to know here:
Do you also evaluate the company buildings?
No, we ourselves can “only” value machines.
However, we have a long and close partnership with the real estate appraisers Wagner & Partner, who specialise in the valuation of operational buildings (and are also EU-certified).
Therefore, we can offer you appraisals “from a single source” on buildings and equipment. This eliminates a lot of coordination, allocation and delimitation work for you, which usually saves costs – but always time and nerves.
Of course, we also work together with a building surveyor suggested by you.
Do you also evaluate other business equipment, such as office furniture?
We also value office chairs, coffee machines, electric cables…
Which business equipment should be included in the valuation depends on the purpose of the valuation. We also clarify this before placing the order. In particular, the demarcation from parts of the building is not trivial.
Incorrect demarcations are, by the way, often a reason for incorrect insurance sums.
Do you also offer so-called desk-top appraisals?
As a matter of principle, we do not offer pure desktop evaluations – i.e. without having seen the machinery. We always(!) inspect the equipment personally and thus also assume liability.
It is not always necessary to physically inspect all machinery and equipment. Often it is sufficient to inspect the business and carry out a valuation of the machinery on the basis of the asset accounting.
If we have determined the insurance values correctly ourselves once, we will take over the correction for the following years by means of value adjustments on request. In this case, we can also assume full responsibility for the insurance values – and without having to carry out an inspection every year!
In which regions are you active?
We are on the road for our customers throughout Europe, with a focus on Germany.
Of course, you can also receive a valuation for your machinery and equipment in English.
Your question was not answered? Do you need more information or would you like us to make you an offer?
Send us an e-mail (Contact) or call us (+49 40 602 13 33).