Appraisal of complete industrial complexes

An industrial plant is not the sum of isolated appraisals

Appraising an industrial complex by commissioning a property report on one side and a machinery report on the other almost always ends in trouble: items left with no owner (equipment foundations, overhead cranes, tank farms, internal networks), items counted twice and depreciation criteria that do not talk to each other. The result does not reconcile — and the auditors notice.

An industrial complex appraisal treats the plant as what it is: an integrated system. Land, civil works, buildings, infrastructure, machinery, equipment, industrial installations and utilities are inventoried, classified and appraised under a single work plan, with explicit boundaries between disciplines and consistent criteria from end to end — combining parts 2 (urban properties) and 5 (machinery and industrial assets) of ABNT NBR 14653.

When the appraisal is necessary

• Deemed cost and fair value — measurement of the complete industrial fixed asset base on initial IFRS adoption or in revaluation, under CPC 27 / IAS 16 and CPC 46 / IFRS 13.
• Large-risk insurance — determination of the value at risk and the replacement cost of the complete plant, avoiding under- or over-insurance and supporting premium negotiation.
• M&A and corporate restructurings — purchase and sale of industrial units, due diligence, spin-offs, mergers and purchase price allocation (PPA).
• Collateral and structured transactions — plants pledged as collateral for financing, debentures and sale and leaseback transactions.
• Litigation and expropriations — expert engagements involving the value of operating industrial units, loss of profits and industrial goodwill.
• Decommissioning — orderly or forced liquidation value of decommissioned plants, segregating what sells as an asset from what sells as scrap.

What we do

• Land and civil works — industrial land, earthworks, internal roads, yards, factory, administrative and support buildings, appraised in accordance with NBR 14653-2.
• Machinery, equipment and production lines — including imported and made-to-order assets with no direct comparable, in accordance with NBR 14653-5.
• Industrial installations and utilities — substations, steam generation, compressed air, refrigeration, tank farms, piping, material handling and effluent treatment.
• Support assets — fleet, forklifts, tooling, furniture, fixtures and laboratory and IT equipment.
• Consolidation — a single base per plant, with values segregated by accounting nature and useful life and residual value per asset or family.
• Complementary studies — remaining useful life, value at risk for insurance and support for the unit's impairment test.

Methodology

1. Planning — review of the fixed asset ledger, definition of the boundaries between disciplines (civil × installation × equipment), inspection plan and schedule per area.
2. Integrated inspection — real estate and industrial appraisal teams in the field under single coordination, with photographic cataloguing and verification of condition and operating regime.
3. Market research — regional real estate data for land and buildings; enquiries with manufacturers, dealers and the used-equipment market for machinery and installations.
4. Appraisal by component — comparison or cost quantification method for the real estate; factor-based treatment and depreciated replacement cost for the industrial assets.
5. Consolidation and reconciliation — assembly of the single base, checks for gaps and double counting and tie-out to the accounting ledger.
6. Report — consolidated report for the complex with memoranda per discipline, an analytical spreadsheet per asset, photographic record and ART (professional liability record) filed with CREA.

Deliverables