Valuation of machinery and equipment — why an accountant is not enough?
Most conflicts in partner separation start with an Excel sheet prepared by an accountant. The problem is that balance sheet numbers rarely relate to what a given piece of equipment is worth on a classifieds portal in March 2025. Numbers have no emotions, but people who see the undervalued value of their contribution certainly do.
The net book value trap
Many entrepreneurs believe that the value of a machine is its purchase price minus depreciation. In practice, a 4-year-old CNC lathe may be worth zero zlotys in the books because it was quickly depreciated all at once. On the secondary market, however, the same equipment costs 83,000 PLN. When one partner wants to take over the workshop and the other expects cash, a gap in the valuation arises that cannot be filled without an external analysis. We have seen a situation where the difference between paper and reality was 156,000 PLN with just three machines.
The accountant deals with taxes, not the market for construction or printing machinery. Their task is to ensure invoices match the tax office guidelines. When it comes to company division, sticking rigidly to depreciation tables is a direct path to court. One partner feels cheated because they know the equipment will earn for another 7 years, and the other claims that since it's zero on paper, nothing is owed. We always say: business must keep running, but on real foundations.
In October 2024, we helped with the settlement of a printing house near Poznań. The owners were arguing over a 2017 imagesetter. The books showed 12,400 PLN, an appraiser valued it at 38,200 PLN. Only this specific number, supported by three offers from the secondary market, calmed the situation. Without it, the dispute would probably have lasted another 4 months, blocking company operations and salaries for 14 employees.
Accounting is for settlements with the tax office, not for fair distribution of assets between people.
Leases and unpaid installments
Equipment under lease is the most difficult piece of the puzzle during a separation. Partners often forget that the machine is not the company's property until it is bought out. During the division, the so-called 'assignment fee' must be valued. This is the difference between the market value of the device and the amount remaining to be paid to the bank. If 12 installments of 3,400 PLN are left to be paid, and the machine is worth 120,000 PLN, then the real asset for division is exactly 79,200 PLN. Such calculation cuts through unnecessary discussions.
We often encounter attempts to hide service costs when valuing leased equipment. One partner argues the machine is worth less because it needs a repair for 11,000 PLN. The other claims it is normal wear and tear. At Corporate Bridge, we suggest a simple rule: clean table, clean account. We deduct documented faults from the market price, but only those that realistically affect the technical efficiency confirmed by a service technician in a protocol dated November 14.
The problem escalates when personal guarantees of partners for lease agreements are involved. If one leaves, they must be released from the bank guarantees. This is a process that takes an average of 34 business days. This cannot be forgotten in the settlement agreement, because after 2 years it may turn out that the former partner is still responsible for an excavator they haven't seen in months. Precision in these provisions protects both parties from the return of the past.
Office equipment and small assets
Most energy is wasted on arguments over laptops, monitors, and office chairs. In one company in Warsaw, the partners spent 3 hours arguing over a 7-year-old coffee machine and 12 desks. This is a management error. For small amounts, we use a flat-rate method. Everything more than 3 years old we value at 23% of the purchase price and close the topic in one point of the agreement. It's not worth the time and money for an appraiser for IKEA furniture.
More important than desks are software licenses and web domains. They often do not appear in fixed assets because they were bought on a cost invoice in 2021. However, without them, the company does not exist. The valuation of a domain that has 8 years of history and generates 47 inquiries monthly is key. Here we don't look at renewal costs of 120 PLN, but at how much it would cost to acquire the same clients through paid Google ads.
Don't burn bridges over an old desk. Focus on what realistically generates cash.
How to prepare for valuation?
The first step is to draw up a physical inventory. Not from the office, but from the hall and warehouse. Serial numbers and the year of production of the 47 most important devices should be recorded. Technical documentation and service history increase the resale value by about 14-19%. If a partner wants to leave the company with a clean slate, they must be sure the valuation is based on facts, not guesswork from behind a desk. We help organize this list in 3-5 business days.
We also recommend checking UDT (Office of Technical Inspection) inspection dates. A machine without current inspections is worth as much as scrap to the market because it cannot be used legally. In June 2024, we saved a division transaction for a transport company because we noticed the lack of supervision on 2 lifts in time. Quickly completing the documents allowed for increasing the valuation of the whole package by 28,000 PLN. These are concrete sums that end up in the pocket of the exiting partner or stay in the company.
Finally, remember: without burning bridges. Even if you don't agree on the price, an independent appraisal report costs around 2,500 - 4,800 PLN. This is a fraction of the amount you would spend on lawyers in court if the case gets stuck at a dead end. Business must keep running, and a smooth division of assets is the only way each side can move in its own direction without regret and a sense of loss.
