Which valuation approaches apply to beverage equipment?
The market and cost approaches do most of the work. Standard beverage and restaurant equipment trades actively, so sales comparison against recent auction and dealer transactions is usually reliable; specialized or custom-built items lean on replacement cost new less depreciation. The income approach is rarely the sole method for a single machine, because it is difficult to tie specific cash flows to one unit inside a process line.
Why does one beverage equipment appraisal sometimes report several values?
Because different purposes require different value premises. Fair market value assumes normal marketing time and fits sales and tax uses; orderly liquidation value assumes a motivated seller over roughly 60 to 90 days and can run 30 to 50% below fair market value for specialized equipment; forced liquidation value reflects immediate auction conditions and may be only 20 to 40% of fair market value. We reconcile the indications and state which premise applies to each conclusion.
What details drive a beverage equipment valuation?
Manufacturer and model, capacity, year of manufacture, condition, maintenance history, installation and utility requirements, and whether the item stands alone or is part of an integrated line. Cost-approach work also adjusts for effective age and functional or economic obsolescence, so detailed documentation beats generic line-item descriptions.
Where does market data for used beverage equipment come from?
Actual auction results, dealer listings, manufacturer price sheets, and trade publications, adjusted for age, condition, and remaining useful life. These transaction sources, not accounting book values or generic price averages, are what make a sales comparison conclusion defensible.