One year later… Why you need to know the value of your business assets and how it could be the lifeline you are looking for…

The COVID-19 pandemic has affected businesses globally in various ways — both positively and negatively. For the businesses who were hit hardest, look no further than your tangible assets as a lifeline to ride out the storm from the pandemic.

Todd Taylor, CMEA, Valuation Analyst & Jason Pagan, ASA March 9, 2021

Over the last year, we have identified risk factors and their impact on cash flow for businesses of all industries.  We have identified highly resilient industries such as: insurance, construction, take-out only and drive-through restaurants, and in contrast, the industries that took the brunt of the closures and mask mandates such as fine dining (sit-down only ) restaurants and gyms.  The latter especially has suffered from mask mandates and the changes in customer preferences.

THE OPTIONS TO LOOK AT BEFORE THROWING IN THE TOWEL . . . 

PPP Loans and SBA-EIDL Loans have helped extend the life of many companies, but others are still looking for ways to remain viable. Many companies are applying for collateral loans to help extend the life of the business. A machinery and equipment appraisal can place a current market value of the company’s FF&E, which can assist with a collateral loan.

KNOW WHAT YOUR SALEABLE ASSETS ARE WORTH . . . 

Assessing whether a business has been impacted but still operating as a going concern, or is facing liquidation and shutdown, is a decision many businesses have faced because of the COVID-19 pandemic. Industries that have a large investment in equipment and physical assets that are facing liquidation still have a fair market value and an equipment appraisal can be performed on these assets.  An equipment appraisal for industries such as gyms and dine-in restaurants can help business owners, bankers, and decision-makers understand the value of saleable assets that remain after cash flow ceases below normal operating levels. 

Understanding the fair value of the equipment is important as the market value of assets can vary dramatically to historical cost methods used in financial reporting or tax basis on the company balance sheets.

Whether your business is impacted by COVID or may be facing a liquidation scenario—our expert appraisers are here to discuss your business situation.  

Connect with the GCF Machinery & Equipment team today.  We are here to help keep small business moving.

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Questions about valuing your business? Please contact us here, and a GCF appraiser will get in touch with you directly.