Assessments of industrial plants and machinery

Valuations of plant, machinery and, more generally, technical fixed assets are carried out in a variety of circumstances, some of which are required as part of the following extraordinary transactions:

• transfer of ownership to another party (divestments, mergers, spin-offs, transfers, etc.);
• verification of the balance sheet (monetary or economic revaluations, allocation of merger deficit to technical assets, establishment of guarantees, balance sheet certifications, etc…);
• comparison of various alternatives resulting from the use of different budget policies (determination of useful lives, simulation of the effects of the choice of different depreciation methods on economic results, tax consequences due to the disposal of assets, etc…);
• Valuation of companies or branches thereof;
• Reconstruction or disaggregation of the historical cost of particular tax classifications.

Depending on the objectives of the intervention, various value assumptions can be identified from a purely capital perspective:

CURRENT VALUE IN USE | It represents today’s investment required to realize-with modern materials and technologies-the estimated asset complex, net of physical depreciation and functional obsolescence. It therefore does not represent an exchange value, but rather the value attributable under the assumption of an operating industry, assuming fair profitability.

MARKET VALUE | It expresses-as opposed to the previous assumption-the consideration obtainable in the event of a sale, assuming a sufficient period of time to conclude the transaction at current market conditions. This value configuration then, in addition to the previously mentioned factors, also takes into consideration the commercial desirability of the asset.

LIQUIDATION VALUE | It is adopted in the event of cessation of business operations, demands for guarantees, forced realization of assets, or prolonged insufficient prospects for profitability. It represents the minimum value that can be assigned to assets and assumes the interest in any case of intermediaries or alternative users.