What is Equipment Appraisal?

Equipment appraisal is the process of determining the value of machinery, tools, and other tangible assets used in a business or industry. This valuation is typically performed by a certified equipment appraiser and is used for various purposes, including:

• Buying or Selling Equipment – Ensuring fair market value for transactions.
• Insurance Purposes – Determining replacement costs or coverage needs.
• Financial Reporting – Assessing asset value for accounting and tax purposes.
• Collateral for Loans – Establishing asset worth for securing financing.
• Litigation or Dispute Resolution – Supporting legal claims regarding asset value.

The appraisal can be based on different valuation methods, such as fair market value, liquidation value, or replacement cost, depending on the purpose of the assessment.