Valuation of Industrial Assets, Plant & Machinery and Real Estate

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    Valuation of Industrial Assets, Plant & Machinery & Realestate

    Asset intensive industry, generally belonging to the manufacturing sector, have huge investments in form of Plants & Machineries as well as Land & Building.

    Valuation of assets, plant & machinery, land & building helps in identifying the right value of these assets especially when they are offered for sale or being bought and also for the correct financial reporting.

    Valuation of Assets including Plant & Machinery, Land & Building and other Industrial Assets may generally be required for following purposes:

    • Mergers & Acquisitions
    • Financial Reporting – PPA or Impairment Testing (under IND AS)
    • Raising of Funds
    • Strategic Sale or Disinvestment
    • Management information & Strategic Planning
    • Dispute, Arbitration & Litigation support
    • Insurance – Ascertaining right Sum Insured
    • Initial Public offerings

    The value of assets will differ notably depending on factors like whether plant, machinery or equipment is being valued in combination with other assets within an operational unit, or as an individual item for exchange. Other factor being, whether Plant, Machinery & Equipment are being valued as either in situ (on site) or for removal. Factors like these further influence the approach to Valuation including the classification, measurement and reporting of, their value; thereby making Valuation of these asset class (Plant & Machinery & Industrial Asset) a relatively complex and niche area as compared to Land and Building Valuations.

    Valuation of Land & Building considers all kinds of legal interests arising from Land & Building which are exchanged for money and therefore involves the phenomena of exchange, scarcity and choice that characterizes a ‘market’ in the economic sense. For businesses like real estate developers or individual property owners – real estate could be a major holding in their portfolio of assets. The key to judging such holding proportions or patterns of real estate in their spread of portfolio lies in measuring the underlying value of assets of real estate (land and building).

    Transique Valuation Advisors provides valuation of Real estate and Plant & machinery (through our affiliated entity which is an experienced and renowned valuer in these asset categories).