Uncategorized
August 16, 2012
Price opinions, both desktop price opinions and onsite price opinions, are estimated valuations of a company’s machinery or equipment or property, and they are used primarily for internal purposes such as asset transfers, accounting adjustments, disp
ensation planning, and business planning. But price opinions are very different from certified valuations, which are primarily used for external purposes, including tax requirements, legal matters, or acquisitions and mergers, to name a few.
A Desktop Price Opinion can be used to determine a competitive and realistic listing price point(s) for particular plant, property, and equipment item(s), as of a particular date, for internal and strategic company decisions. This service is performed from the desk by EquipNet’s senior equipment specialists, with no onsite inspection of the assets, and estimations of value are developed under hypothetical and limiting conditions. All information is obtained from the client and assumed “true and accurate” for the pricing report. The equipment specialist researches relevant pricing levels, in line with the scope of work, and provides a written report.
An Onsite Price Opinion is an expert recommendation of disposition and pricing strategy based on an onsite visit by an EquipNet equipment specialist with in-depth equipment knowledge. The equipment specialist physically inspects the equipment, records relevant asset data, and assesses factors that may affect pricing (condition, removal, options, change-parts availability, etc.). Based on the information provided, the equipment specialist researches relevant pricing levels and provides a disposition and pricing strategy in a written report.
Price opinions are NOT certified valuations, and will not stand up under scrutiny or meet the requirements of financial institutions, government agencies, buyers and sellers, shareholders, courts, and partners. If you have questions about the differences between price opinion valuations and certified appraisal and valuations, please contact EquipNet or visit the valuation services section of our website.
Categorias: Uncategorized
