Valuation of manufacturing plants and special-purpose facilities as going concerns.
GP Valuation appraises manufacturing plants and special-purpose facilities for lenders, owners and auditors. Where the property operates as part of a business, the firm concludes the going-concern value and allocates it among the real estate, the machinery and equipment, and the intangible assets.
A plant is valued for the use it serves, and the allocation shows how much of that value the real estate holds.
The real estate
Land, buildings and site improvements are appraised by the approaches the evidence supports, with specialized improvements such as clean rooms, cold storage and heavy power valued for their contribution to the use.
The machinery and equipment
Production equipment is valued in continued use, by the firm or by a machinery and equipment specialist working under the same engagement and effective date.
The business
The going-concern value rests on the income the operation produces, and the intangible assets, including licenses, registrations and customer relationships, account for the value that remains after the tangible assets.
The firm values plants for four kinds of decision.
Lending
Market value of the real property and going-concern value of the operation, reported separately for the credit file, including loans under SBA programs that finance owner-occupied plants.
Acquisitions
Allocation of the purchase price among the real estate, the equipment and the intangible assets of an acquired manufacturer, measured by the firm for financial reporting.
Sale-leasebacks
Market value and market rent of a plant that an operator sells and leases back, with the lease terms the market supports for the use.
Property tax
Market value as of the assessment date for appeals, with the specialized improvements and any functional obsolescence measured.
Specialized improvements are valued at the price a buyer of the same use would pay for them.
A clean room or a validated production line adds value only for a buyer who needs it, so the firm measures demand among operators of the same use and the cost to replicate the improvements, less depreciation and obsolescence.
Where the market for a specialized plant is thin, the report states the evidence available and the weight placed on each approach, so that a reviewer can judge the conclusion against its support.
Engagements begin with the plant, the operation and the date the report is needed, and the firm confirms scope, fee and delivery date in writing.
The firm replies within one business day and arranges a call from there.
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