Owning a plant, specifically a manufacturing plant, bears a lot of responsibility, specifically when it comes to determining the overall value of your business. Being an owner of a manufacturing plant means that your business specialises in a certain field of manufacturing and this in turn would mean that your business makes use of specific machinery. The primary reason that a manufacturing plant owner would conduct a valuation on the plant and assets is to ensure that the plant is insured at the correct market value as well as the machinery. This is extremely important for:

  • Insurance purposes
  • Selling the plant and its contents.

After all you do not want to be in the position where you have to pour extra money into your plant should you suffer a loss due to fire, theft or damage!

How would the valuation on the plant be conducted?

There are several ways in which you can determine the overall value of a manufacturing plant:

  • Machinery: One of the first things that gets looked at when you are in the process of valuing a plant is the value of each piece of machinery. This gets determined in a few ways. One of the ways is to look at how old the machinery is, versus the condition that is in. Machinery that is aged but still works perfectly and shows signs of having been cared for tend s to fetch a higher price than machinery that has trouble running. Another thing that gets looked at is the performance of the machine, how does it perform now compared to when it was first bought? If it is still the same or better, then you can be sure that it will fetch a decent price on the market.
  • Location: The actual location of the plant is also a factor when determining the overall price of it. The reason for this is that people will pay a lot for a good location. Other plants in the area may also be looked at. If the plant is in an area where other plants are highly valued, the value of it automatically goes up.
  • Maintenance: How well has the plant itself been maintained over the years? Is it immediately fit for occupation or does it need renovations? These are a few of the things that will be taken into consideration when you are getting your plant valued. The more functional it is, the higher the price that you will get for it will also be.

These are some of the factors that go into valuation of a manufacturing plant. When you decide to have the valuation done, make sure that you get a registered consultant to do it for you, as you will need a certificate of valuation before you can proceed with selling or updating the insurance value of the plant.

What you need to do is contact the professionals in the property valuation industry – The Property Partnership. The Property Partnership will guide you through the valuation process every step of the way and will be on hand to answer any questions that you might have. From property rentals to property valuations, The Property Partnership will be able to help you. To find out more about the services on offer through The Property Partnership, visit their website www.property-partnership.co.za