Business Assets Valuers (BAV)

Valuers of Plant, Machinery and Infrastructure Assets

Property, Plant and Equipment
Machinery Assets
Process Equipment
Manufacturing Equipment
Mining Equipment
Furniture Items
Office Equipment
Workshop Equipment
Motor Vehicles
Mobile Plant Assets
Infrastucture Assets
Intangible Assets
Biological Assets
Inventory items
Service Industry Assets
Household Furniture and Equipment
IT Assets
Hotel Assets
Schools Assets
Hospital Assets
Public Assets
Local Government Assets
Private Assets
Investment Assets

"We are the experts in Plant and Equipment Assets, Business Valuations, Asset Register Compilation, Verification and Reconciliation, Asset Tagging and Coding."

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Valuation Purposes

As a business owner, you will require our valuation services
for the following purposes

  • Financial Reporting Valuations

    Our valuations for financial reporting adhere to the guidelines set forth by the International Accounting Standards Board (IASB), an autonomous entity responsible for establishing and disseminating International Financial Reporting Standards (IFRS). The relevant standards typically taken into account for financial reporting valuations are as follows:

    1. IAS 16 & IPSAS 45: Property, Plant and Equipment

      IAS 16 and IPSAS 45 outline principles regarding the identification of property, plant, and equipment as assets, determining their carrying values, and assessing depreciation expenses and impairment losses related to them. Once recognized, an organization selects either the cost model or the revaluation model as its accounting approach and applies this policy consistently to an entire category of property, plant, and equipment.

      • According to the cost model, a property, plant, or equipment item is recorded at its original cost minus any accumulated depreciation and accumulated impairment losses.

      • According to the revaluation model, a property, plant, or equipment item with reliably measurable fair value is recorded at a revalued amount, representing its fair value at the revaluation date minus any subsequent accumulated depreciation and impairment losses. Regular and up-to-date revaluations are essential. 

        Any increases resulting from revaluation are acknowledged in other comprehensive income and accumulated in equity, except if they counteract a prior revaluation decrease. Conversely, decreases from revaluation are recognized in profit or loss, unless they reverse a previous revaluation increase.

    2. IFRS 13: Fair Value Measurement

    3. The fundamental valuation principle for Financial Reporting is Fair Value, which is elucidated below. IFRS 13 outlines the concept of fair value, establishes a framework for its measurement, and mandates disclosures concerning fair value assessments. According to IFRS 13, fair value denotes the price that would be obtained upon selling an asset or the price that would be paid to transfer a liability in an orderly transaction between market participants as of the measurement date (referred to as an exit price). In determining fair value, an entity employs the assumptions that market participants would utilize when pricing the asset or liability in current market conditions, which includes considerations about risk. Consequently, an entity's intention to retain an asset or to fulfill a liability is immaterial in the assessment of fair value.

    4. IFRS 5: Non-current Assets Held for Sale and Discontinued Operations

      IFRS 5 necessitates categorizing a non-current asset or disposal group as held for sale if its carrying value is expected to be predominantly recuperated via a sale transaction rather than through ongoing utilization;

      • Assets designated as held for sale are to be assessed at the lower of their carrying amount and fair value less costs directly associated with their sale.
      • Depreciation of an asset stops once it is classified as held for sale.

    Business Assets Valuers team of accredited valuers has excellent knowledge and understanding of the requirements of IAS 16, IPSAS 45, IFRS 13, and IFRS 5.

  • Business Assets Valuers' team has a good understanding of the valuation requirements for impairment testing.

    1. IAS 36: Impairment of Assets

      The core principle in IAS 36 is that an asset must not be carried in the financial statements at more than the highest amount to be recovered through its use or sale. If the carrying amount exceeds the recoverable amount, the asset is described as impaired.

    2. IPSAS 21: Impairment of Non-Cash Generating Assets

      IPSAS 21 deals with impairment of non-cash generating assets. The core principles are similar to IAS 36.

  • Our team is well experienced with the requirements for valuations for mergers and acquisitions, including purchase price allocation, asset identification, and due diligence.

    1. IFRS 3: Business Combinations

      The core principles in IFRS 3 dictate how an acquirer measures the cost of the acquisition, allocates that cost to the acquired identifiable assets and liabilities, and recognizes any excess in profit or loss immediately.

  • The purpose of insurance valuation of machinery and equipment assets is to provide the insured party with an accurate assessment of the value at risk of plant and other equipment for which they are responsible.

    Declared Value/Sum Insured: Declared value and sum insured are terms used to describe the sum total of all property insured at each situation declared by the insured.

    Bases of Settlement: Reinstatement with New Value and Indemnity Value are two common bases of settlement.

    Business Assets Valuers has a team of experts with over 30 years of combined experience in this area of specialty.

  • If you want to know how much your established business is worth before selling, talk to the experts. Business Assets Valuers are able to help you with the accurate market value of your entire business.

    The advantage of getting a whole business valuation is that the value reflects the earning capacity of the business and value in use of the assets. Value Accuracy has the capacity to value the whole business as an operational facility and/or provide market values for individual assets including intangible assets.

  • Assets valuations are also performed for assets selling or purchasing purposes. One of the reasons we offer valuation services to our clients is to provide peace of mind that when selling their hard-earned assets or purchasing business assets, they can be assured of accurate indication of market values from the experts. Our team of experts have the knowledge of the market for most of machinery and equipment assets.

  • Assets could be valued for in-kind capital contribution. The basis of value for in-kind capital contribution is Market Value. The equity of a company can be increased in different ways, via a cash injection or via a contribution in kind. A contribution in kind is an equity increase that is not in cash: e.g., contribution of assets. The assets are valued to reflect their fair contribution in monetary terms.

  • BAV team has considerable experience in providing valuations for insolvency matters including administration and liquidation as well as advice on proper disposal/realisation methods.

  • We also help our clients with valuations for litigation and dispute resolutions. Please contact us if you ever have the needs for dispute resolution valuations.

  • Your assets can be used as security for loans by banks or financial institutions. Our team of experts can help with valuations that comply with banks or financial institutions lending requirements. Depending on the basis of value required by your lending institution, we are able to provide you with the lower end of value (Forced Liquidation Value), the average (Orderly Liquidation Value), and the upper end of value (Market Value). We are able to provide lenders with accurate and reliable advice regarding expected realization from your assets.

  • Our team can carry out different market value assessments for internal decision making. Market Value assessments could be under the following assumptions;

    • Market Value in Existing Use - that is installed and in operation.
      Market Value in Exchange - that is uninstalled and ready for sale.

Valuation Services

Plant & Equipment Valuations

Machinery and Equipment valuations may be required for various reasons including estimating fair values for financial reporting, estimating replacement/reinstatement costs and indemnity values for insurance, estimating market value for purchase or sale of business or business assets, estimating fair recoverable amounts (fair value less cost to sale or value in use) for impairment testing, estimating fair values for business combinations (mergers and acquisitions), estimating fair values for Purchase Price Allocations, estimating market values and or liquidation values for loan security or asset financing, estimating orderly liquidation values and or forced liquidation values for insolvency and bankruptcy/liquidations, estimating market values for in-kind capital contributions, estimating market values for disputes resolutions etc.

Business Valuations

Business Valuations are undertaken for various reasons including Determining the Sale Value, Mergers and Acquisitions, Investment Decisions, Corporate Restructuring, Tax Reporting, etc. Our expert business valuers use different methods to value your business and cross check the methods with each other to come up with robust business value of your company. The methods include Discounted Cash Flow analysis, Market Capitalisation, Enterprise Value, Earnings, Present Value of Growing perpetuity, Book Value etc. Give our experts a call to discuss further.

Asset Register Creation

Creating and maintaining an accurate asset register is very important as it forms the foundation of all asset management activities within the organization. Accurate, reliable asset data enables effective asset decision-making. Some advantages of having a comprehensive and accurate assets register are as follows; Know the assets owned by the company, Captures most of the asset characteristics, Easy to update the asset register, Easy asset verification for auditors, Effective maintenance record keeping. A good asset register has to be simple, practical and easy to update and enables effective maintenance history recording. The asset data in an asset register my include Asset Number, Asset Location, Asset Descriptions, Asset Attributes and Specifications, Asset Components etc.

Asset Coding & Tagging

Asset coding and tagging enables an organization to track physical assets with the use of tags and labels such as RFID tags, barcodes, and GPS trackers. A wide range of data can be gathered by use of asset tags and labels, such as asset class or category, real time location, asset users, purchase history and cost, depreciation charges, revaluation fair values, maintenance schedules, asset condition, useful life, remaining useful life etc. Asset tagging saves time and resources in locating assets/equipment and reduces costs associated with loss and theft. Our team of experienced valuers can help collect the correct and useful data for your assets and establish a coding system.

Valuation Bases

Bases of value (sometimes called standards of value) describe the fundamental premises on which the reported values will be based. It is critical that the basis (or bases) of value be appropriate to the terms and purpose of the valuation assignment, as a basis of value may influence or dictate a valuer’s selection of methods, inputs and assumptions, and the ultimate opinion of value” IVS 104; 10.1

a. Market Value

International Valuation Standard 104 defines Market Value as the estimated amount for which an asset or liability should exchange on the valuation date between a willing buyer and willing seller in an arm's length transaction, after proper marketing and where the parties had each acted knowledgeably, prudently and without compulsion.

b. Fair Value

According to International Financial Reporting Standard, IFRS 13: Fair Value Measurement, Fair Value is defined as the price that would be received to sell an asset or paid to transfer a liability in an orderly transaction between market participants at the measurement date.

A fair value measurement is for a particular asset or liability. Therefore, when measuring fair value an entity shall take into account the characteristics of the asset or liability if market participants would take those characteristics into account when pricing the asset or liability at the measurement date.

A fair value measurement assumes that the asset or liability is exchanged in an orderly transaction between market participants to sell the asset or transfer the liability at the measurement date under current market conditions.

A fair value measurement assumes that the transaction to sell the asset or transfer the liability takes place either:

  1. in the principal market for the asset or liability; or
  2. in the absence of a principal market, in the most advantageous market for the asset or liability.

An entity shall measure the fair value of an asset or a liability using the assumptions that market participants would use when pricing the asset or liability, assuming that market participants act in their economic best interest.

Fair value is the price that would be received to sell an asset or paid to transfer a liability in an orderly transaction in the principal (or most advantageous) market at the measurement date under current market conditions (i.e. an exit price) regardless of whether that price is directly observable or estimated using another valuation technique. The price shall not be adjusted for transaction costs but for transport costs, if any.

Fair Value as defined in the above referenced accounting standards will generally be consistent with Market Value and defined by the International Valuation Standard Committee above. Therefore, in many instances Fair Value will be equivalent to Market Value.

c. Market Rent

Market rent is the estimated amount for which an interest in real property should be leased on the valuation date between a willing lessor and a willing lessee on appropriate lease terms in an arm’s length transaction, after proper marketing and where the parties had each acted knowledgeably, prudently and without compulsion. IVS 104; 40.1

A fair market rent takes into consideration various factors including the condition of the property, prevailing market rates, location, and any special features or amenities. It aims to reflect the value of the property for leasing purposes in the current market conditions.

Market rent is typically determined through market analysis and comparison with similar properties in the same area that have recently been leased. It's important that the transaction is conducted under fair and reasonable conditions, with both parties acting without any undue pressure or influence.

Proper marketing efforts are also essential to ensure that the property is exposed to a wide range of potential lessees, thereby maximizing the likelihood of achieving the optimal rental value.

d. Equitable Value

Equitable value is the estimated price for the transfer of an asset or liability between identified knowledgeable and willing parties that reflects the respective interests of those parties. IVS 104; 50.1

e. Investment Value

Investment value is the value of an asset to a particular owner or prospective owner for individual investment or operational objectives. Investment value is an entity-specific basis of value. Although the value of an asset to the owner may be the same as the amount that could be realised from its sale to another party, this basis of value reflects the benefits received by an entity from holding the asset and, therefore, does not involve a presumed exchange. Investment value reflects the circumstances and financial objectives of the entity for which the valuation is being produced. It is often used for measuring investment performance. IVS 104; 60.1-2

f. Synergistic Value

Synergistic value is the result of a combination of two or more assets or interests where the combined value is more than the sum of the separate values. If the synergies are only available to one specific buyer then synergistic value will differ from market value, as the synergistic value will reflect particular attributes of an asset that are only of value to a specific purchaser. The added value above the aggregate of the respective interests is often referred to as “marriage value.” IVS 104; 70.1

g. Liquidation Value

Liquidation Value (IVS104) - defined as the amount that would be realised when an asset or group of assets are sold on a piecemeal basis. Liquidation Value can be determined under two different premises of value. Orderly Liquidation - An orderly transaction with a typical marketing period - describes the value of a group of assets that could be realised in a liquidation sale , given a reasonable period of time to find a purchaser (s), with seller being compelled to sell on an as-is, where-is basis. OR Forced Sale - a forced transaction with a shortened marketing period - describes the price that could be obtained under circumstances where a seller is under compulsion to sell and that, as a consequence, a proper marketing period is not possible and buyers may not be able to undertake adequate due diligence. IVS 104; 70.1

Valuations Approaches

  • Market Approach

    The market approach provides an indication of value by comparing the asset with identical or comparable (that is similar) assets for which price information is available The market approach uses prices and other relevant information generated by market transactions involving identical or comparable (i.e., similar) assets, liabilities or a group of assets and liabilities, such as a business. It provides an indication of value by comparing the asset with identical or comparable (that is similar) assets for which price information is available. The market approach is used as the primary basis for a valuation under the following circumstances:

    1. the asset has recently been sold in a transaction appropriate for consideration under the basis of value,
    2. the asset or substantially similar assets are actively publicly traded, and
    3. there are frequent or recent observable transactions in substantially similar assets.
    The main method under Market Approach is the Comparable Transaction Method.
    Comparable Transactions Method
    Comparable Transaction /Sales Comparison method is the most appropriate for market approach method and follows the below steps.
    1. identify the units of comparison that are used by participants in the relevant market,
    2. identify the relevant comparable transactions and calculate the key valuation metrics for those transactions
    3. perform a consistent comparative analysis of qualitative and quantitative similarities and differences between the comparable assets and the subject asset
    4. make necessary adjustments, if any, to the valuation metrics to reflect differences between the subject asset and the comparable assets
    5. apply the adjusted valuation metrics to

  • Cost Approach

    The cost approach provides an indication of value using the economic principle that a buyer will pay no more for an asset than the cost to obtain an asset of equal utility, whether by purchase or by construction, unless undue time, inconvenience, risk or other factors are involved. The approach provides an indication of value by calculating the current replacement or reproduction cost of an asset and making deductions for physical deterioration and all other relevant forms of obsolescence. The cost approach reflects the amount that would be required currently to replace the service capacity of an asset (often referred to as current replacement cost). The common cost elements included in the cost approach are not limited to the following: • Direct Costs – Material and Labour • Indirect Costs – Transport Costs, Installation Costs, Professional Fees, Overheads, Taxes, Finance Costs, Profit Margins. The main methods under cost approach are Replacement Cost and Reproduction Cost
    Replacement Cost Method
    The replacement cost is calculated as amount required to reproduce the entire property in like utility and function. It is based on current market prices for materials, labour, equipment, contractor’s overhead, profit, and fees. It does not include provisions for overtime, bonuses, or premiums on materials. Fair Value is estimated as the difference between replacement cost and accumulated depreciation caused by obsolescence
    Reproduction Cost Method
    The amount required to reproduce a duplicate of the entire property. This is very similar to replacement cost. However, where replacement cost considers like utility and function, reproduction cost considers like kind and materials. The goal would be to replace the structure as an exact replica of the original. Reproduction cost is appropriate in circumstances such as the following: a. the cost of a modern equivalent asset is greater than the cost of recreating a replica of the subject asset, or b. the utility offered by the subject asset could only be provided by a replica rather than a modern equivalent Fair Value is estimated as the difference between reproduction cost and accumulated depreciation caused by all forms of obsolescence.

  • Income Approach

    The income approach provides an indication of value by converting future cash flow to a single current value. Under the income approach, the value of an asset is determined by reference to the value of income, cash flow or cost savings generated by the asset. The income approach should be used as the primary basis for a valuation under the following circumstances: • the income-producing ability of the asset is the critical element affecting value from a market participant perspective, and • reliable projections of the amount and timing of future income are available for the subject asset, but there are few, if any, relevant market comparable.

Valuations Processes

Our thorough valuation process takes the following 20 steps:

  1. Contact Us with your Requirements at assets@businessassetsvaluers.com
  2. Discuss the Requirements with our Team and Agree on Scope of Work
  3. Provide us with any relevant Asset Registers or Asset Lists
  4. Sign Valuation Proposal that contains agreed Scope of Work, Fees and Deliverables
  5. Valuation is assigned to an experienced and specialized valuer(s) in that field and/or area
  6. The valuer arranges for pre-inspection or physical inspection of the assets
  7. The valuer collects more data from the client including, and where necessary, drawings, contracts, etc.
  8. Valuer performs physical inspections noting asset specifications - make, model, serial number, registration number, capacity, dimension, year built/manufactured, condition, etc.
  9. Reconcile asset register with Inspection data to produce the Valuation Asset Register
  10. Research for Replacement Costs and Comparable Sales for identical or similar assets, where necessary
  11. Research for Economic Lives, Total Useful Lives, and Residual Values of the assets
  12. Make adjustments to Replacement Cost for installations, freight, transport, commissioning where necessary
  13. Make adjustments to Comparable Sales for Age, Location, Condition, Usage, Similarity, etc.
  14. Quantify physical, technical, and economic obsolescence and compute Depreciated Replacement Cost, where necessary
  15. Assign Fair/Market Values from adjusted Comparable Sales or from Depreciated Replacement Cost
  16. Write a Comprehensive Valuation Report that complies with International Valuation Standards
  17. Director or Senior Valuer reviews the report against our robust Quality Checklist System to ensure compliance with International Valuation Standards requirements
  18. Submit a Draft Report for Client Review
  19. Attend to client issues/queries and amend the report accordingly
  20. Submit Final Report

Professional Accreditations

  1. Australian Property Institute (AAPI) - Certified Practising Valuers

    "The API recognises its role as guardians of the status and standing of the property profession and of its duty to protect and further the public interest. The API also acknowledges that the privileges accorded to professional persons by the community are accompanied by responsibilities to client and community, which cannot be waived".


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  2. American Society of Appraisers (ASA) - Accredited Senior Appraisers

    "ASA is a multi-discipline, non-profit, international organization of professional appraisers representing all appraisal disciplines: Appraisal Review & Management, Business Valuation, Gems & Jewelry, Machinery & Technical Specialties, Personal Property and Real Property. Our mission is to foster the public trust of our members and the appraisal profession through compliance with the highest levels of ethical and professional standards"


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  3. Royal Institution of Chartered Surveyors (RICS) - MRICS - Chartered Machinery Valuation Surveyors / Registered Valuers

    "As a globally recognised professional body, everything we do is designed to effect positive change in the built and natural environments. Through our respected global standards, leading professional progression and our trusted data and insight, we promote and enforce the highest professional standards in the development and management of land, real estate, construction and infrastructure. Our work with others provides a foundation for confident markets, pioneers better places to live and work and is a force for positive social impact".


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  4. Saudi Authority for Accredited Valuers (Taqeem) - Machinery and Equipment Valuation Sector

    "Saudi Authority for Accredited Valuers (TAQEEM) is the regulator of the valuation profession in Saudi Arabia. Taqeem works on implementing laws and legislations which allow valuers to practice the profession according to the International Valuation Standards (IVS). Taqeem also provides training courses which accredit and qualify practitioners based on international practices. Valuation contributes to preserving rights and achieving justice through providing professional services and high-quality valuation reports. Because we believe in promoting trust and transparency in the market as well as creating an attractive investment environment in alignment with the Saudi vision 2030, we have chosen "Trust in Value" as our slogan".


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Our Experience

Our valuers have a combined experience of over 40 years have successfully provided services in the following but not limited to:

 

Private Sector

  • Large Mobile Plant & Machinery
  • Earthmoving Equipment & Motor Vehicles
  • Mining Equipment & Mineral Processing
  • Manufacturing & Processing Machinery
  • Quarry & Cement Manufacturing
  • Food, Grain, Flour Processing Plants
  • Printing, Pressing & Cutting Equipment
  • Woodworking & Workshop Equipment
  • Timber Processing
  • Agriculture and Farming
  • Hospitality and Catering
  • Computers, IT & Office Equipment
  • Warehousing Racking & Equipment
  • Household Goods and Office Furniture
  • Electronics & Scientific Equipment
  • Bottling and Bottle Cleaning Equipment
  • Breweries & Milk Processing
  • Restaurant, Hotels & Catering Equipment
  • Plastics Processing & Packaging
  • Medical & Laboratory Equipment
  • Aircrafts & related Equipment
  • Retail & Wholesale

Public Sector Assets

  • Plant and Equipment Assets
  • Roads and Drainage Networks
  • Roads and Parks Furniture Assets
  • Sewage Treatment Plants and Pipe Networks
  • Sewer Pump Stations and Underground Pipe Networks
  • Stormwater Water Pump Stations and Underground Pipe Network
  • Schools - Furniture and Equipment
  • Marines' assets including Jetties, Boat Ramps etc

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Our Team

Our accredited, registered, qualified, and certified machinery and equipment valuers have a good understanding of International Accounting Standards (IAS), International Financial Reporting Standards as well as International Valuation Standards. The team with combined experience of over 40 years consists of various industry recognized professional accreditations including Certified Practicing Valuers of Australian Property Institute (API-CPV), Accredited Senior Appraiser (ASA) membership of American Society of Appraisers, Chartered /Registered membership of Royal Institution of Chartered Surveyors (MRICS) as well as Appraisal Review & Management (ARM) certification.

Business Assets Valuers team of valuers combines engineering and financial qualifications, knowledge of manufacturing systems and processes, and years of experience analyzing useful lives and depreciation patterns of various machinery and equipment assets, to estimate the most reliable market-based values. All our valuations and advisory services comply with International Valuation Standards (IVS 2025), International Accounting Standards (IAS), International Public Sector Accounting Standards (IPSAS), International Financial Reporting Standards (IFRS).

Our valuers with a combined experience of over 40 years have successfully provided services in both private and public sectors.

Call us for more information and to discuss your requirements further.

Frequently Asked Questions

Below are some common questions about business asset evaluation. If you need more information or have specific queries, feel free to contact us.

If you have additional questions or need personalized assistance,
please don't hesitate to contact us via email, phone, or live chat.

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Contact us to get started

If you have any questions or inquiries, please feel free to reach out to us via the contact information below.

Call:

New Zealand wide: +64 21 920 951
Australia wide: +61 45 050 4772, +61 452 301 974

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