Uncategorized
July 5, 2012
A recent story about a San Francisco-based auto parts company that decided to shut down its operations highlights the importance of conducting a certified machinery and equipment appraisal (CMEA) in such a situation.
The company, which manufactured auto parts for foreign imports, was struggling for some time before the owner decided to shut down and liquidate its assets. They had a tremendous amount of inventory on hand and decided to sell it off to their competitors.
The company researched the resale value of the equipment on, of all places, eBay, and assigned their own values to match. They sold off almost all of the equipment and shut down operations.
The owner of the company wrote a blog post about the experience and was contacted by a CMEA, who was curious about the inventory and the process the company went through. When the former owner gave the CMEA all of the numbers and specifications of the inventory, he was devastated to find out he’d undervalued the equipment by tens of millions of dollars. The buyers certainly got a steal on that deal!
The lesson here, always have a CMEA perform an appraisal of your company’s assets to ensure that you get full value for your machinery and equipment. A Certified Machinery and Equipment Appraisal is based on years of experience and methodical research, and is defensible, irrefutable, and substantiated.
It is essential for business owners to know the value of their equipment, especially if they are looking to sell, so that they can receive the best possible price in the current market. Visit EquipNet’s Facility Closure Resource Center for more information.
Categorias: Uncategorized
