Hinge Manufacturing Equipment Appraisals

Hinge Manufacturing Equipment Appraisals

M&E Appraisal Associates, Inc. (“M&EAA”) recently appraised the machinery & equipment of a hinge manufacturing company.

M&EAA are experienced door & gate hinge manufacturing equipment appraisers and have provided certified hinge manufacturing equipment appraisals since 1990.

The subject company is a manufacturer of architectural hinges, geared hinges, single acting spring hinges, double acting spring hinges and other like kind specialty products.

M&EAA appraised the subject items under both the Fair Market Value and Orderly Liquidation Value scenarios. The appraisal was accomplished for loan consideration purposes for which the subject items were to be pledged as collateral.

The appraiser relied primarily on the  sales comparison or market approach in valuing the subject items (although the cost and income approaches were considered). Parties contacted as part of the market research process included equipment dealers or resellers of used equipment, original equipment manufacturers (OEM’s), and other such sources. Additionally, data obtained from published sources and data maintained in M&EAA’s files was also considered. Final sources of information considered included published price guides, current sales offerings, and/or recent sales of comparable items, including auction sales. Utilizing standard appraisal methodology and after the consideration of all relevant data, values were concluded.

Hinge Manufacturing Equipment Appraisers

The subject machinery & equipment included an assortment of stamping presses (OBI, gap frame, straight side), coil steel stamping lines, screw making machines, dedicated hinge manufacturing equipment, CNC machine tools, tool & die shop equipment, plating and plating support equipment, general plant support equipment, material handling equipment and quality control & lab equipment.

The “standard” machine tools were considered to be desirable to other like kind operators and end users. The more “special” hinge making equipment was also determined to be desirable (to a lesser degree), as there is currently no like kind equipment available in the domestic marketplace. Common use items such such as air compressors, air dryers, forklifts and general support items would be readily salable to wide variety of other commercial or industrial end users.

Hinge manufacturing equipment appraisals – conclusions: the domestic hinge manufacturing market continues to be greatly impacted by offshore producers.  This somewhat limits the potential demand for dedicated hinge making equipment. The general use equipment was not impacted by these economic factors. In general, the concluded values were favorable for the subject items appraised due to their mix, current market demand, and typical good condition.

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