Machinery and Business Assets (MBA)
The vast majority of industrial and commercial properties contain an element of plant and machinery, which in certain instances such as in major manufacturing plants and data centres, can exceed the value of the real estate.
MBA Surveyors can advise on the valuation and sale of both tangible and intangible assets anywhere in the world. In the same way that property surveyors advise and act on property used for business purposes, MBA surveyors provide valuation and agency services for all aspects of machinery and business assets in the industrial, commercial and government sectors.
Machinery and business assets encompass a comprehensive spectrum of industries and assets ranging from aircraft & airport equipment, carbon credits, construction, dairy, food & beverage, electronics, engineering, glass manufacturing, hospitals, hospitality, IT and telecoms, manufacturing plants, marine, milling, petrochemical, pharmaceutical, plastics, power stations & renewable energy systems, stadium assets, stock, printing & packaging, recycling, road transport, textiles, woodworking and veterinary. The list is literally endless, and this discipline is best considered under two principal aspects, valuation and agency.
The valuation of plant and equipment can be challenging. In one single property, there can be hundreds and sometimes thousands of different individual assets, generally from different suppliers and of varying ages. There is a myriad of issues to consider including economic & technical obsolescence, the valuation of bespoke & iconic assets, intangibles and intellectual property. In certain instances, the buildings themselves may be considered as a single purpose structure and actually classified and valued as plant.
Principally asset valuations are carried out for insurance, balance sheet, secured asset-based lending (incorporating residual value forecasting), business sales, mergers & takeovers, intercompany asset transfers, surplus assets, company closures and insolvency. The basis of valuation will be dependent on the client’s requirements, and it is always important to separately identify any leased and third-party assets.
Maintaining a machinery cost database and comparative evidence of asset sales is an extensive responsibility for MBA surveyors, requiring considerable management and ongoing global research.
The sale of machinery & business assets had many key elements including valuations for reserves, detailed cataloguing & photography, geolocation digital & traditional marketing, legal conditions and accounting for funds received from multiple purchasers, often originating from various overseas locations.
Following the sale of assets, another significant factor is the project management of extraction logistics for both home and export sales. In some situations, machinery which is embedded in the fabric of the building will require detailed extraction and repatriation planning. MBA Surveyors regularly have to engage with expert service providers to ensure best health & safety practices, risk analysis & method statements (RAAMS), decommissioning and environmental issues. Personnel welfare, safety and a zero-harm policy to the fabric & services of the buildings housing the machinery are of paramount importance.
The following is a list of members providing these services:
Robert McKay, Fellow
McKay - Machinery & Business Assets Registered Surveyor
Philip Cooney, Professional Member
Cooney Industrial Auctions Ltd - Machinery and Business Assets.
Frederick (Ricky) Wilson, Professional Member