Cost approach
depreciated replacement cost new
Services
Industrial Asset Valuation
Industrial machinery, productive equipment, vehicles and intangible assets. Reports with legal, tax and banking validity, RICS Red Book compliant, delivered from 48 hours.
What is it?
What is industrial asset valuation?
An independent valuation determines how much an industrial asset base is really worth — and what evidence supports that value before a bank, an auditor, an insurer or a court.
At Capital Appraisal we value machinery, production lines, industrial vehicles, technology equipment and intangible assets under RICS Red Book standards as a regulated firm. Every report is issued with a qualified digital signature, full methodological traceability and validity for legal, fiscal, accounting and banking use.
The team combines sector experience with Indaxy Technology, developed by a dedicated in-house team: automated valuation cross-checked against a base of more than one million real secondary-market data points, fed periodically from auctions, closed transactions and valuations by our own experts; the Valuers App for structured on-site capture and Asset Studio to consolidate portfolios of hundreds of assets. This makes it possible to deliver everything from a single valuation to the full inventory of a plant with the same technical precision.
Glossary · acronyms and technical terms
- ABL — Asset-Based Lending
- Corporate financing structured on the value of the collateral (industrial assets, warehouses, stock, accounts receivable) rather than on cash flow. It requires an independent valuation to set the LTV of the transaction.
- FMV — Fair Market Value
- Fair market value: the price at which an asset would change hands between informed buyer and seller, without pressure and with reasonable knowledge of the market. It is the most common basis of value for bank collateral on industrial assets.
- IFRS — International Financial Reporting Standards
- International accounting framework applicable to consolidated financial reporting. In a valuation context, IFRS 3 governs purchase price allocation (PPA), IFRS 13 defines fair value measurement and IFRS 16 governs lease accounting (key in Sale & Leaseback transactions).
- M&A — Mergers & Acquisitions
- Mergers and acquisitions: corporate purchase and sale transactions between companies. In industrial contexts they require an independent valuation of the tangible asset component.
- OLV — Orderly Liquidation Value
- Orderly liquidation value: the price expected in a managed sale of the assets within a reasonable period (usually 6-12 months), with prior preparation and qualified buyers. It usually sits between 60% and 85% of market value.
- PPA — Purchase Price Allocation
- Accounting allocation of the price paid in an acquisition across the various assets acquired. It is carried out after the closing of an M&A transaction and requires an independent fair value valuation by asset type, defensible before an auditor (typically Big Four).
- RICS — Royal Institution of Chartered Surveyors
- International professional body founded in 1868 in the United Kingdom under Royal Charter, regulating valuation firms in more than 140 countries. Capital Appraisal is a firm regulated by RICS under the Valuer Registration Scheme (VRS), with periodic audits of processes, ethics and independence.
- RICS Red Book — RICS Valuation – Global Standards
- Global methodological standard published by RICS for professional valuations. It defines the bases of value (Market Value, Fair Value, FMV, OLV, FLV, etc.), the approaches (cost, market, income), the report structure and the independence requirements. It is the reference required by corporate banking, Big Four auditors and European regulators. It operationally implements the IVSC's IVS.
- SLB — Sale & Leaseback
- A transaction in which a company sells an industrial or real estate asset and then leases it back from the buyer. It releases capital from the balance sheet while retaining operational use of the asset. Common in logistics warehouses and production lines. It requires an independent valuation and modelling of the impact under IFRS 16.
- VRD — Depreciated Replacement Value
- Replacement cost new less accumulated physical, functional and economic depreciation. It is the basis of calculation for insurance policies at real value.
- VRN — Replacement Cost New
- The cost of replacing the asset with a new one equivalent to the current market. It is the basis of calculation for replacement-value insurance policies ("new for old" cover).
What is it for?
Five situations in which you need this service
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Apply for ABL or Sale & Leaseback financing
The bank needs an independent valuation of the industrial collateral to set the LTV of the deal. We issue OLV + FMV under the RICS Red Book with documentation the risk committee accepts directly.
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Update the insurable value of a production base
An industrial policy must cover the real value, not the book value. We calculate RCN and ACV to avoid underinsurance or overinsurance, with a complete, geo-referenced insurable inventory.
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Provide an independent value in an M&A deal
In merger, acquisition or divestment deals, an independent valuation of the industrial component gives quantitative support to the price negotiation and blocks speculative discounts.
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Meet fiscal or accounting reporting requirements
IFRS (IFRS 13) requires fair-value measurement of the asset base for consolidation, demergers, non-cash contributions and intra-group transactions. We issue reports accepted by the Big Four.
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Defend the value before a third party (auditor, judge, authority)
When the value must be justified before a demanding counterparty — an external auditor, a court, the tax authority — RICS Red Book methodological traceability is the basis that makes every figure defensible.
What will you receive?
The deliverable
Every engagement closes with a digitally signed report, the supporting documentation and the valuer's availability to defend the value before third parties at no additional cost.
- PDF/A valuation report with digital signature
- Detailed inventory with a technical record per asset
- Executive summary for management
- Methodological traceability and documented sources
Typologies we value
- Industrial machinery and productive equipment
- Complete production lines
- Industrial vehicles, fleets and mobile machinery
- Technology equipment and IT infrastructure
- Software, digital platforms and databases
- Intellectual property and intangible assets
Valuation methodology
Market approach
comparables from real transactions
Income approach
discounted cash flow (DCF)
Compliant with RICS Red Book Valuation Standards
regulatory framework applied across the three approaches
Capabilities
- Individual or bulk valuation of asset portfolios
- Analysis of technical and functional obsolescence
- Determination of Orderly Liquidation Value (OLV) and Fair Market Value (FMV)
- Periodic update of collateral value
- Reports prepared under RICS Red Book standards
Sectors
Common questions
Frequently asked questions
- What types of industrial assets can Capital Appraisal value?
- Industrial machinery, production lines, vehicle fleets, industrial units and complete plants, intangible assets and specialised inventories. We cover every production sector: automotive, food, chemical, metallurgical, textile, pharmaceutical and technology.
- What legal standing do your valuation reports have?
- We issue reports with legal, tax and banking standing, prepared under RICS Red Book standards as a regulated firm. They are accepted by financial institutions, auditors, courts and public administrations.
- What is the turnaround time for a valuation report?
- Standard delivery within 48 hours of the site visit and receipt of documentation. Complex projects (multi-site portfolios, complete plants, court expert reports) are planned with specific timelines agreed at the proposal stage.
- Does the valuation include a site visit to the asset?
- Yes. Our valuers visit every asset, documenting condition, hour meter / mileage, serial numbers and operating conditions. For large portfolios we use the Indaxy mobile app, which speeds up field capture without compromising rigour.
- How much does a valuation report cost?
- The price is calculated according to scope: number of assets, geographical spread, purpose of the report and level of detail required. The first consultation is free and a no-obligation quote is provided within 24 hours.
- Which basis of value do you apply: FMV, OLV or insurance reinstatement value?
- It depends on the purpose. For bank collateral, typically Fair Market Value (FMV) and Orderly Liquidation Value (OLV) in parallel. For IFRS 13 financial reporting, Fair Value. For insurance, insurance reinstatement value and depreciated replacement value. The report explicitly states the basis applied and justifies it under the RICS Red Book.
- Are your reports accepted by Big Four auditors?
- Yes. RICS Red Book compliance is the format that Deloitte, PwC, EY and KPMG accept directly, with no additional documentation, for IFRS 13, IFRS 3 (PPA) and group consolidation purposes. We regularly work with their Valuation Advisory teams on transactions that require cross-validation.
- Can you value assets with low or very low unit value (portfolios of hundreds of assets)?
- Yes, and this is where Indaxy Technology stands out. The Valuers App structures bulk on-site capture with automatic reading of technical nameplates, geo-referenced photography and structured voice dictation. Asset Studio consolidates the portfolio, applies automated valuation by typology against our secondary-market comparables database and issues the overall signed report under RICS. The same RICS rigour applies whether for a single asset or a portfolio of 500.
Tell us what you need
Step 1 / 7: What type of asset do you need to value?
What type of asset do you need to value?
Tick all categories that apply — a single engagement can combine several.
You can select several · none selected
Need to know the real value of your assets?
Request your valuation. First contact, scope and fees with no obligation, under the RICS Red Book standard.
No obligation · RICS-regulated firm · European coverage