Plant and equipment valuations can enable the optimisation of the financial structuring of your assets. This can lead to better funding terms for your business.
For companies that rely upon assets, it’s common for plant and equipment to comprise 40% – 85% of their total business assets. An independent valuation from Main Valuation can manage the detail of these valuations to provide you with the tools you need in lending and leasing.
He wins his battles by making no mistakes. Making no mistakes is what establishes the certainty of victory, for it means conquering an enemy that is already defeated.”
LENDING AND LEASING
Facilitating
funding
Bankers don’t always understand the assets they finance or the markets they trade in. When a business case supports the acquisition of new equipment, bankers can still be reluctant. With Main Valuation in your corner, our team can help relieve their concerns by providing independent asset information that is relevant to the markets they trade in. Your valuation becomes an asset in its own right, providing bankers with certainty, easing their concerns, and facilitating swift funding.
Optimal
capital structure
The correct capital structure lends many advantages to your business. The tax deductible nature of loan interest enables the tax shield of debt. Valuations can help to optimise your business and, with a valuation from Main Valuaiton, you can get the accurate financial advice you need to move forward with confidence in your next move.
Calculation
methods
At Main Valuation, we use the calculation method best suited to your valuation needs. This is often dependent on the economic environment in which the asset is situated. Where there is a deep and liquid market for an asset, an excavator for example, the comparable sales method is the best method to ascertain valuation outcomes. If cash flows can be directly tied to the asset, Locomotive Leasing for example, Net Present Value (NPV) calculations can be used. Where a deep and liquid market is not available and a revenue steam cannot clearly be attributed to the asset, a gantry crane for example, the Depreciated Replacement Cost (DRC) method is used to calculate the market value of the asset.
