Whether ahead of a sale, for insolvency proceedings, or as the basis for a decision during a plant closure: a realistic valuation of industrial machinery is the foundation for every sound economic decision. Not knowing the value leads to poor decisions.
This article explains which valuation methods exist, which method fits which purpose — and where a free market-price assessment ends and a formal appraiser’s report begins.
The three valuation methods
Comparable-sales method (market price)
The most practical method for machine tools: you look for comparable transactions — machines of the same brand, model, build year, and similar condition, traded over the last 12–18 months — and derive a market price from them.
This is the method we use. It’s precise when enough comparable transactions exist, and it produces realistic price bands rather than single figures. For standard machine tools from known manufacturers, we hold extensive current transaction data.
Limitation: unreliable for very rare machines or one-offs with a small comparison market.
Asset-value or substance-value method
Starts from the original price minus market-standard depreciation. Theoretically structured, but often imprecise in practice: manufacturer discounts, market shifts, and technological progress make the depreciation rate highly variable. Tax depreciation rates rarely reflect the real change in value.
Useful for: initial orientation without comparison data, balance-sheet depreciation planning.
Income-value method
Calculates a machine’s value from its discounted future earnings potential. Relevant for entire production lines or corporate valuations, where the machine’s cash flow is a valuation element. Rarely applied to individual machines in a sale context.
Which valuation for which purpose?
| Purpose | Free market-price assessment | Formal appraisal |
|---|---|---|
| Decision: sell? | ✓ | Not needed |
| Negotiation: is the trade-in fair? | ✓ | Not needed |
| Insolvency: proof of market value | Limited ✓ | Recommended |
| Balance sheet / tax: depreciation | ✗ | ✓ |
| Insurance value | ✗ | ✓ |
| Legal proceedings | ✗ | ✓ |
| Corporate transaction (M&A) | Orientation | ✓ |
| Plant closure / wind-down | ✓ | If needed |
What a professional market-price assessment from us includes
When we value a machine — by phone or on site — you get:
Price band: Not a single figure, but a realistic range (worked example with freely chosen figures, not market data: €55,000–80,000) that accounts for normal market fluctuation.
Influencing factors: What raises the price (good spindle condition, complete equipment, a current control generation), what lowers it (high hours, missing options, known defects).
Marketing timeline estimate: How long it typically takes to market a machine like this — one to two weeks for liquid models, several months for rare equipment.
Recommendation: Should the machine be sold now, or is it worth waiting for better market conditions? Is a repair worth doing before the sale?
When you need a formal appraiser’s report
A publicly appointed and certified appraiser (under § 36 GewO) produces a legally usable report — with their own liability framework, signature, and acceptance in court. That’s noticeably more expensive than our free market assessment, but essential for legally relevant purposes.
For insolvency proceedings involving significant value, we recommend supplementing our market-price assessment (as a transaction basis) with a formal appraiser’s report. We can recommend suitable appraisers from our network.
Request a free market-price assessment for your machinery — no obligation; on a direct purchase, payment is made by bank transfer before pickup.