Five P&M Valuation Situations — Which Brought You Here?
Whether your requirement involves a bank facility, financial restructuring, an Income Tax search, a business sale or insurance renewal, the right Government Approved P&M Valuation starts with understanding the situation you are facing.
Your Plant & Machinery Valuation requirement usually begins with a specific business event.
The valuation approach, documentation and reporting requirement can vary depending on why the certificate is required. The following five situations cover the principal reasons for seeking a Government Approved P&M Valuer for factory machinery, industrial equipment and related assets.
Bank requiring a P&M hypothecation certificate
The bank’s credit team wants a Government Approved P&M Valuer’s MV and DSV certificate before sanctioning or renewing your facility.
You need to understand: what the valuer will inspect; why the DSV is lower than the MV; what you can do to maximise the certified collateral value; and what documentation the bank requires.
Company in financial stress or IBC CIRP
Your company is in financial difficulty; a Resolution Professional has been appointed; and the machinery in your factory is among the primary assets.
You need to understand what happens to machinery in CIRP, what Fair Value and Liquidation Value mean for your equipment, and how the resolution plan is affected by the P&M valuation.
IT Department search found unaccounted machinery
The Income Tax Department’s Authorised Officers are at your premises and have found machinery not reflected in your asset register or not matching the declared asset schedule.
A Government Approved P&M Valuer’s certificate is needed immediately to establish the valuation of the machinery identified during the search.
Selling the business
You are selling your factory or manufacturing business. The buyer’s due diligence team will have their own P&M valuer.
An independent certificate from A2Z Valuers before the buyer arrives establishes the fair value that prevents the buyer from marking down your machinery in the purchase price.
Insurance renewal and the underinsurance gap
Your factory equipment insurance is based on purchase values from several years ago. Equipment costs have risen significantly. You suspect you are underinsured.
A current Replacement Cost New (RCN) certificate from a Government Approved P&M Valuer is the document that updates your coverage to the correct basis.
Your Situation Has a Valuation Requirement.
Speak with the valuation practice to understand the appropriate P&M valuation certificate, documentation and next steps for your situation.