Valuations for Insurance Purposes
Tse Value specialises in valuations for insurance purposes.
Our aim is to ensure that clients have valuation advice that results in appropriate and cost effective insurance solutions to manage and minimise risk and to assist management with its duty of care to owners and shareholders
Clients know their buildings are a significant business or investment cost. Business Assets within buildings are also a significant cost and, in total, can be of greater value than the buildings. Any loss or damage of these assets, and/or the potential that loss or damage has to interrupt the continuity of a business operation, has significant financial impact on the business. Damage to buildings and assets interrupts income but usual costs continue and added costs accrue. Given the significant financial investment in buildings, plant and machinery, business owners, directors and executives are responsible for protecting these assets and managing the risk
Tse Value’s professional staff understand the significant costs involved.
They are aware of all factors that need to be addressed to ensure clients minimise the impacts of the financial cost of recovery from loss or damage – construction, supply of assets, professional and consent fees, commissioning costs, and delays caused by heritage requirements, compliance with current codes, demand and supply of building materials, labour, and approvals, and the impacts of inflation.
As well as having the specialist skills in all aspects of valuation and knowledge of the commercial and industrial building stock throughout New Zealand, Tse Value offer the benefits of a one-contract package inclusive of additional expert advice required, provided from the engineers, architects, surveyors and planners they have access to, at the clients request.
We provide clients with annual or bi-annual update reporting, recognizing valuations for insurance purposes need to be up to date to be effective.
Valuations for the Sale and Purchase of Property
We provide independent current market valuations and background local market information to our clients to enable them to make informed decisions regarding Sale and Purchase of property
On occasion we are requested to act on behalf of clients to prepare a surplus property for disposal and work with a real estate agent to achieve the sale conclusion.
Valuations for Rent Reviews
In addition to the normal Rent Review process we are often requested to provide negotiation and strategy advice so that our clients can balance proposed rent settlements against other options. This is provided for commercial, industrial and office premises.
Valuations of Assets for Financial Reporting
We assist public companies, corporate clients and government departments to fulfil their financial reporting obligations by providing valuations of assets, property, plant and equipment. We have been providing this service nationwide for in excess of twenty years.
Valuations for Transactions
Valuations are essential for a range of commercial transactions – going concerns, liquidations, receiverships, auctions, lending, forced sales, financing, variation in ownership shares, transfers to Trusts, estate planning and tax planning – to ensure best financial outcomes, protection of business assets, and risk management. We consult with clients to ensure the appropriate levels of market value are applied to fit their business objectives. The choice depends on whether assets are sold together as part of a profitable going concern, separately, or on failure of a business venture.
Particular assets, which may have been costly and essential to the specialised business, may have little or no market value if the business becomes unprofitable. We use our expert knowledge so that clients benefit from the choice of the different approaches that can be applied to asset valuation, depending on the class of asset and circumstances surrounding the transaction.
Valuations for Loss Adjustment purposes
We can assist clients in the event of an insurance claim. We have specialist knowledge of buildings, plant and equipment and the basis for valuing each class of asset. We have experience with a variety of different claims, including fire damage to noted Historic Buildings.
Property Cost Allocation
We provide property cost allocation to allow owners to maximise their returns by claiming the depreciation allowable under current tax legislation. This fluctuates with economic and political change reflected in the legislation. We complete appropriate classification and depreciation assessments as prescribed under current legislation. Many assets within the building have much shorter lives than the building itself and therefore have the potential to attract higher depreciation rates. The law is constantly changing and we respond to the changes as they occur, advising the best approach for a particular client.
Plant, Equipment & Fit-out/Services Valuations for Sale Price Allocation
We value plant and equipment for financial and tax purposes. We provide asset registers (both hard and electronic format) with appropriate depreciation rates and depreciation calculated to the clients’ tax year end. This is supported by a detailed report giving the valuation methodology and information about the allocation process.
Most clients know that tax losses on buildings are non-deductable and losses on plant and equipment are deductable. Tax depreciation recovery can be derived from calculations based on total book value/total sale price for the assets. Losses on plant and equipment are tax deductable. Also deductable are losses on fit-out and services.
A market value based allocation is required to complete the more detailed depreciation where the sale price, be it for building fit-out or plant, must be allocated to individual assets in line with the tax register entries. If there is a loss on the building, only part of the loss attributable to the fit-out/services will be tax deductible.