Due Diligence and capital costs of vehicles and heavy equipment

by a searcher from University of British Columbia

4 years ago

Hi everyone, I'm new to the group and under LOI with a small asphalt contracting company that does preventative maintenance and repairs. The company has a decent equipment list of vehicles, heavy equipment & tools. 

I'm trying to get  a better idea of how to effectively due diligence the equipment, estimate it's current value and project future capital reinvestments.

Does anyone have any good resources to share on this?

2 likes
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11 comments

searcher from Pennsylvania State University

1 year ago | like reply | 0 likes

investor from Illinois Institute of Technology

We've used: https://marshall-stevens.com/. An experienced appraiser should be able to give estimated useful life estimates. Also investigate the heavy equipment auction houses...you'll need orderly liquidation and under-the-hammer valuations for the bank. FMV for allocation of purchase price in your asset purchase agreement. Replacement cost for your insurance company.

4 years ago | like reply | 0 likes

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