M&E Appraisal Associates, Inc. (“M&EAA”) recently appraised the machinery & equipment of a mulch & soil processing company. M&EAA are experienced mulch processing equipment appraisers and soil processing equipment appraisers, and have provided certified mulch processing equipment appraisals and soil processing equipment appraisals since 1990.
The subject company processes, treats, colors and bags various types of mulches for a variety of end uses. The subject company also mixes and blends a diverse range of soils and compost materials.
The specific assets appraised by M&EAA included a soil production line, (2) mulch bagging lines, a mulch coloring system, (2) portable downswing grinders, as well as numerous screens, conveyors, trucks, trailers, excavators, wheel loaders, skid steer loaders, forklifts and other related items.
M&EAA relied primarily of sales comparison or market approach in valuing the subject items (although the cost and income approcahes 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. Based on the use of standard appraisal methodology and the consideration of all relevant data, values were concluded.
The mulch & soil processing related items were considered to be desirable to other like kind operators. Common use items such as standard, trucks, tractors, excavators, wheel loaders, skid steer loaders, and forklifts, etc. would be desirable to users of like kind equipment in a wide variety of other commercial or industrial applications.
Mulch processing equipment appraisals – conclusions: with upward trending housing starts and more cash to spend on home improvement projects, most manufacturers of both mulch and to a lesser degree soils are seeing steady sales growth in U.S. regional markets. Concluded values were favorable for the subject items appraised due to their mix, current market demand, and good condition.