Bakery Equipment Assets Appraisal

There are various good reasons to have your equipment routinely appraised. The most common reasons for determining the value of your equipment are:

  • Preparing for selling your surplus machinery or equipment
  • Substantiating equipment values when applying for a loan
  • Using the assets as collateral in an asset-based financing
  • Conducting assets valuation as part of an overall business valuation analysis in connection with a sale of merger
  • Proving this information for insurance purposes.

Additionally, appraising your machinery and equipment may be required for things like:

  • Tax purposes,
  • Retirement planning
  • Divorce and / or estate settlements
  • Cost segregation
  • Partnerships and / or trust Agreements
  • Litigation support

Whatever the reason may be, it is imperative that a professional appraiser will conduct your appraisal. However, prior to contacting an appraiser, there are some preliminary actions you should perform to maximize the value of your equipment.

Prepare A Detailed Equipment List

One of the first things you should do is to have a detailed and organized inventory list with all pertinent information on your surplus assets that you can provide to your appraiser. A good list, containing, at minimum, the product name, manufacturer, year, specs and technical info, and some lines describing what the machine does is critical. Other useful information will be repair records if applicable, purchase receipts, manuals, warrantee certificates, and serial numbers.

The more informative this list will be, the more confident your appraiser will feel regarding the assets, which will drive up the value of the assets. Missing information is often resulting in concerns for the unknown and for a discounted asset value.

Clean and Paint Your M&E

The next step is to try to make sure the assets are clean, and if necessary paint the items to maximize the appraised value. Additionally make sure assets are full working condition and perform any maintenance and repairs work if necessary. Allow yourself enough time before the appraisal to do all of this, so careful planning ahead of time is very important.

Take High Quality Pictures of Your Equipment

One picture is worth a thousand words. Taking good quality pictures, from multiple angles, of the equipment, while making sure there is plenty of light in the factory is going to be well worth the time. Appraisals are often done remotely (these types of appraisals are known as “Desktop Appraisals”) based on the assets list and pictures provide by

After taking the above steps, you are ready to call in for an appraiser. Whether you need to know the FMV (fair market value), OLV (Orderly Liquidation Value) or QSV (Quick Sale Value) of your assets, you should obtain a credible Certified Equipment Appraisal Report that holds up under scrutiny with banks, government agencies, buyers, sellers, shareholders or partners. To do that, it is important to make sure that the appraiser has specific experience in your relevant industry and is knowledgeable about the sort of machinery and equipment you have in your facility that is needed to be appraised.

The appraiser will base valuations on actual sales results of similar or identical assets, either from a past auction or from a liquidation sale. The appraiser will also factor in the assessment various variables such as age and condition of the machine, the materials it is made from, maintenance levels, secondary market conditions, geographic location, particular design and/or modifications, technical obsolescence, and other industry trends/economic fluctuations.

At Artisan Capital Partners, our expert bakery machinery and equipment appraisal team has decades of experience in the bakery sector and has appraised hundreds of bakeries across the globe. Our team members are all certified and have unmatched experience in practically every type of bakery equipment. We can give you an accurate and defendable estimate of value at a fair price. Call us!

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