Tangible Asset Valuation
We help CPA firms, valuation firms, and transaction advisory practices deliver accurate, audit-ready plant, machinery, and equipment valuations faster and at a fraction of the cost of in-house teams.
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What Is Tangible Asset Valuation?
Tangible asset valuation is the process of determining the fair market value of physical assets, including machinery, equipment, furniture, fixtures, and real property. Unlike intangible assets such as goodwill or trademarks, tangible assets have a physical form and are typically depreciable over their estimated useful lives.
For businesses involved in mergers, acquisitions, financial reporting, or compliance, an accurate tangible asset valuation is essential. Under U.S. GAAP, companies are required to value tangible assets as part of purchase price allocations under ASC 805 and perform impairment testing of long-lived assets under ASC 360. Robust and well-supported valuations help organizations meet financial reporting requirements, facilitate audit readiness, and support informed business decisions.
Knowcraft Analytics provides outsourced tangible asset valuation support to CPA firms, independent valuation practices, and transaction advisory firms across the United States, delivering compliant, defensible valuations with faster turnaround and lower cost than in-house teams.
Our Tangible Asset Valuation Support Includes:
Purchase Price Allocation: Tangible Asset Component (ASC 805)
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Under ASC 805, tangible assets acquired in a business combination must be measured at fair value. We value machinery, equipment, and real property for the tangible asset component of purchase price allocations, delivering analyses that integrate seamlessly with broader PPA engagements.
Our team has supported transactions across manufacturing, healthcare, technology, energy, and logistics, helping clients deliver audit-ready documentation and high-quality valuation work.
Impairment Testing Support for Long-Lived Assets (ASC 360
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When events or changes in circumstances indicate that long-lived tangible assets may not be recoverable, ASC 360 requires impairment testing. We assist with recoverability assessments, fair value analyses, and impairment loss calculations for machinery, equipment, and real property.
Our valuation approach is tailored to the asset class and the nature of the impairment indicators, providing well-supported analyses for financial reporting.
Desktop Valuation of Machinery and Equipment
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Knowcraft Analytics specializes in the desktop valuation of machinery, and equipment (M&E) for U.S.-based CPA firms and independent valuation practices. Our analysts assess physical assets using cost and market approaches, delivering fully documented valuation reports that meet U.S. GAAP and IFRS requirements.
Our M&E desktop valuation engagements cover manufacturing equipment, industrial machinery, specialized tools, vehicles, furniture, and fixtures. We work from asset schedules, management data, and publicly available market sources to complete valuations efficiently, without requiring on-site visits for qualifying engagements.
Typical turnaround: 5–7 business days for standard desktop valuation packages. Rush delivery available.
Report Writing
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Beyond the valuation itself, advisory firms often face the challenge of producing clear, defensible, and well-documented valuation reports under tight deadlines. Knowcraft Analytics provides report-writing support, including drafting valuation memoranda, methodology sections, assumption schedules, and supporting exhibits that meet audit review and client delivery standards.
Every deliverable is prepared using your firm’s templates and formatting preferences and undergoes a rigorous quality review before submission.
Secondary Market Research Assistance
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Accurate tangible asset valuation depends on reliable market data. Knowcraft Analytics provides targeted market research support to valuation analysts and advisory teams, using publicly available information on comparable machinery and equipment, auction results, secondary market listings, and other relevant market sources.
This service is particularly useful for non-standard or specialized assets where comparable data is limited and requires dedicated research effort. Our findings help strengthen valuation assumptions and support well-documented, defensible valuation analyses.
Why Outsource Tangible Asset Valuation?
For valuation and CPA firms managing high deal volume, hiring and retaining credentialed in-house appraisers for plant, machinery, and equipment work is expensive and inefficient. Outsourcing tangible asset valuation to a specialized offshore partner like Knowcraft Analytics delivers measurable advantages:
U.S. GAAP Expertise
Full working knowledge of ASC 805, ASC 360, and ASC 820
Consistent Quality
ISO 27001:2022 certified processes with multi-level review on every engagement
~40% faster turnaround
Overnight delivery on desktop valuations due to time-zone leverage
Scalable Capacity
Handle deal-flow peaks without hiring, scale up or down as needed
Cost Efficiency
Access CVA and CPA credentialed analysts at 50 – 60% lower cost than U.S.-based equivalents
Frequently Asked Questions
What is tangible asset valuation?
Tangible asset valuation is the process of estimating the value of physical assets, including machinery, equipment, furniture, fixtures, and real property. Depending on the purpose of the valuation, the applicable standard of value may be fair value or fair market value. It is commonly performed for financial reporting (including ASC 805 and ASC 360), M&A, insurance, tax compliance, and litigation support.
Why do CPA and valuation firms outsource tangible asset valuation?
Outsourcing tangible asset valuation allows advisory firms to access credentialed analysts (CVA, CPA) at significantly lower cost, reduce turnaround times by up to 40%, and scale capacity during high-volume deal periods, without the overhead of hiring full-time in-house appraisers.
What valuation approaches does Knowcraft Analytics use?
Depending on the asset type, valuation purpose, and available market data, we apply the cost approach, market approach or income approach. The most appropriate methodology is selected in accordance with ASC 820 Fair Value Measurement guidance and accepted valuation practices.
What accounting standards govern tangible asset valuation?
Tangible asset valuation under U.S. GAAP is commonly performed in connection with ASC 805 and ASC 360, while ASC 820 provides the fair value measurement framework applied when fair value is required. Knowcraft Analytics has deep knowledge of these standards and applies them consistently across every engagement.
What industries do you support?
We support tangible asset valuation engagements across manufacturing, energy and utilities, healthcare, technology, transportation, real estate, retail, and agriculture, with particular specialization in machinery, and equipment for asset-intensive sectors.
How long does a desktop tangible asset valuation take?
For standard desktop M&E valuation engagements, we typically deliver within 5-7 business days of receiving complete asset schedules and supporting information. Rush delivery is available for time-sensitive transactions.
What is the difference between tangible and intangible asset valuation?
Tangible assets are physical in nature, machinery, equipment, property, and fixtures. Intangible assets have no physical form; examples include goodwill, trademarks, patents, and customer relationships. Both are valued as part of ASC 805 purchase price allocations, but the methodologies differ significantly. Knowcraft Analytics has dedicated teams for both.
Case Studies
Impairment Testing Under ASC 350 & ASC 360: A Public Company Case Study
The Client and The Ask: Valuation of a publicly listed U.S. entity and its impairment testing under ASC 350 and ASC 360. Scope of Work: Valuation using the income and market approaches to...
Sales and Collection Reconciliation
The company is a quick-service restaurant and operates three stores in the state of California. The company also operates its business through online food delivery platforms, including DoorDash,...
Accounts Payable Migration – Streamlining ERP Transition
One of our clients recently merged with another company. Among other changes, the event of the merger also triggered a transition to a new Enterprise Resource Planning (ERP) system. As their trusted...



