Business Valuation Blog | Understanding Buying / Selling a Company

Keep Your Equipment Rental Company on Top with a Business Appraisal!

Posted by Business Valuation Specialists LLC on Nov 9, 2020 8:00:00 AM

Business Valuation Machinery & Equipment Rental Business


A recent forecast by the American Rental Association projected an astonishing $71 billion in revenue for North American rental company businesses by 2023. What does that say about the future of your equipment rental company? Are you in a good position to take advantage of this growth? Many companies find that having a business appraisal performed helps when positioning a company for upcoming growth. Here is how:

When a business appraisal is performed on your company, you gain access to insights into your business, your industry and the market as a whole. Business appraisals look at many factors in your company and how they interact internally and external to the overall industry. Most business appraisers will look at your finances, processes, overhead, market share and similar areas to determine final value. This can vary depending on the purpose of the appraisal, whether it is for a merger, partner buy out, or to determine the financial health of your company.

As an example, an equipment rental business has a lot of money in their tangible assets. The value of that equipment declines overtime, however, that does not mean the value of the business as a whole will go down, especially if you are investing in upgrades and replacements. Even though these vital assets may be the first thing you consider when calculating your balance sheet, there is more to the picture than just the rental equipment.

Your reputation in the market, competition and community goodwill are just some of the intangible factors that come into play during a business valuation. An appraiser will look into all these components of your company during the appraisal process. A certified business appraiser has the industry experience and only deals in valuation work, which allows for the focus needed to provide accurate supportable conclusions of value.

By taking the time to have a quality business valuation performed on your equipment rental company, you can make the changes needed to take advantage of the planned industry growth. Do not sell your business short. At Business Valuation Specialists, we can connect you to an experienced appraiser who can determine the value of your company and help you take advantage of the anticipated market conditions.