Medical Equipment and Asset Appraisals
A medical equipment or asset appraisal is when an item or group of items is given a monetary valuation based upon several determining factors that have influence on the value. This service is very useful to hospitals, surgery centers, and clinics because it provides a basis of knowledge about the value of their equipment and empowers them for decision making for various purposes.
An appraisal gives a healthcare facility or organization a valuation for several events. Due to the consolidation move in healthcare, acquisitions and mergers have become more and more common. When an acquisition or merger takes place, the purchaser and seller must have a basis for the value of the assets that are involved in the contemplated business relationship. A medical equipment consultant can provide an accurate appraisal so an equitable transaction can take place. Another reason to consider an appraisal is when a facility is liquidating assets, whether for a closing/moving situation or just selling assets that are being replaced by newer ones. Without the understanding of an asset or group of assets value, a facility or organization is at a disadvantage when it comes to negotiating the sale of asset, regardless of the reason, potentially leaving valuable dollars on the table.
An appraisal is based upon what kind of situational appraisal that is needed. Two common appraisal approaches are Fair Market Value and Orderly Liquidation Value. A Fair Market Value (FMV) appraisal is based upon what the market says the equipment or asset is worth based upon its age, usage, and demand. Another factor in an FMV appraisal is if the unit is in place and operable, or in situ. If this is the case, the unit has additional value because the proposed acquisition is to acquire the device(s) in place, eliminating the need to de-install, relocate and re-install.
Another valuation approach for a piece of equipment is determined if there are plans to liquidate the device, referred to as Orderly Liquidation Value (OLV). In that kind of valuation, you must factor in costs for de-installation, shipping, reinstallation and recertification costs for the future buyer. Obviously this type of valuation shows less monetary value, but gives the seller a realistic opinion of what the device will sell for. MERC provides our customers with appraisals based upon whichever approach best fits the need they have for their medical equipment or other assets.
When trying to attain a proper valuation for your medical equipment and assets, it is imperative to obtain the services of an experienced and reputable medical equipment consultant. MERC has provided valuation services to many customers with outcomes that support large transactions and equipment liquidations. Feel free to contact us if you have any questions about our asset appraisal solutions or would need help in resolving your valuation concerns.
