Why Do I Care About The Value Of Your Company’s Assets?

Hello, my name is Ken Fancolly and welcome to the first blog from my company, Certified Asset Appraisals.  Our company has been conducting personal property valuations for over 20 years.  I just thought it was time to share our experiences with and knowledge of the asset management and valuation industry with the hope you can find some helpful hints, answer some common questions, and obtain some useful information.  But most importantly, why I care about the value of the property in your organization.

Over the next few weeks, we will highlight a wide range of issues and topics from the impact of physician reimbursements and their impact on independent practice values to personal property tax valuations to sports facilities.  The asset tagging and asset inventory process will get some attention as well.  Let me know what is important to you and your company as it relates to values and asset management. I want to make the blog relevant and useful you.  Talking about asset values generally brings to mind a bunch of boring number crunching but I’ll but put some different spins on the subject.

SO, WHY DO I CARE…and…WHY SHOULD YOU?

Everyone has a stake in what their company is worth.  Not just its stock value but what the physical things surrounding you are worth.  From the chairs everyone is sitting in to the most sophisticated piece of equipment the company uses to produce its products or serve its customers.  Unless something is obsolete or junk, everything has value.  Depreciation schedules only show the book value after depreciation.  Once the asset has been depreciated down to zero, it still has value.  If the company is being sold, the true value of the asset is not necessarily the book value but what the fair market value is.

If your company is looking to refinance some heavy construction equipment or manufacturing equipment, the lending institution is going to want to know if the equipment has enough collateral value to make the loan viable.

Every company wants its tax bill to be as low as possible.  One aspect of this the county’s tangible personal property tax levy.  Don’t rely only on the county’s tax collector to set the value on your company’s tangible property.  A well-researched property valuation can establish the true value and ultimately lead to lower personal property taxes.

Every organization, whether it is a school district or a hospital, has to make sure its property insurance is adequate.  When doing an appraisal for an organization, I often see the replacement value of their inventory is higher than what is covered by their insurance.  Knowing the current replacement costs and insuring the assets with that can save millions from a  catastrophic event such as a fire or tornado.

So, why do I care?
I want people and companies to really know what their assets are worth. Call us or call someone else but have an appraisal done by a competent, certified, and experienced appraiser. It will pay dividends in the future.