At The Property Partnership, we provide motivated valuations of property, plant and machinery. “Motivated” means we include supporting documentation to clarify our valuations, in order to empower you to justify these values to your shareholders, the bank, your buyer, or for any other purposes.
Typically, our clients need these kinds of valuations for the following reasons, among others:

  • Purchase and Sale
  • Balance Sheet Requirements
  • Security/ Mortgage Bond Valuations
  • Merger/ Take-Over and Corporate Information
  • Legal/ Judgement Purposes
  • Expropriation
  • Privatisation
  • Municipal Valuations and Rates Objections
  • Tax Valuations
  • Auction Reserves

When your valuation is objective and properly motivated, you have the confidence to make the best decisions for your business, knowing that your valuation is based on real-world values that the market will bear.

What do we mean when we say “fair value”?

Investopedia has this to say:

Fair market value (FMV) is, in its simplest expression, the price that a person reasonably interested in buying a given asset would pay to a person reasonably interested in selling it for the purchase of the asset or asset would fetch in the marketplace. To establish FMV, it must be assumed that prospective buyers and sellers are reasonably knowledgeable about the asset, that they are behaving in their own best interests, that they are free of undue pressure to trade and that a reasonable time period is given for completing the transaction.

In other words, fair market value is the price for which an asset may be sold given current circumstances. These circumstances include current market conditions, the condition of the asset, the need of the buyer and the requirements of the seller. Other factors include the likely value a buyer might be able to elicit from the asset in time (eg: rental income from a property purchase), the predicted life of the asset (such as plant or machinery, which has a finite life), and the costs involved in maintenance of the asset. Assets which require a good deal of maintenance will logically be less valuable than those that do not.

Another factor to consider is the proliferation of similar assets on the market. If you need to buy a specific type of warehouse in a particular area, and there is only one of them available, this warehouse would be much more valuable to you than if there were ten similar warehouses available. Moreover, if there are fifty buyers just like you, the value becomes greater still. It’s a classic case of supply and demand – the more of the asset available, the lower the price. The fewer buyers interested in it, the lower its value. The more buyers there are, the higher the value becomes – and the scarcer the asset, the more valuable it becomes.

Each of these factors compounds the basic, intrinsic value of the asset. At its core, every piece of property, plant, or machinery, cost something to come into existence, and has a basic worth. The market factors described above influence that worth in different directions.

To get these calculations right and determine fair value of an asset, it is not enough to be able to wrangle a spreadsheet or operate a calculator. An experienced property valuer will need to have knowledge of these factors as they relate to the specific asset in question, as well as broader knowledge of the way these factors affect assets generally, and the asset being valued particularly.

At The Property Partnership, we understand these factors, and we know how they relate to your assets. So whatever the reason is that you need an asset valued, for an objective, fair valuation, you need The Property Partnership. Call us on 0860 999 440 or email for the answers you need – answers you can take to the bank!