3 machine valuation mistakes that cost 15k PLN
Last month, I was analyzing the machinery park at a plant in Gliwice. The owner was certain that his three hydraulic presses were worth 140,000 PLN because that's what appeared in the accounting documents. After a reliable market valuation, it turned out the real price was 123,400 PLN – a difference of almost 17,000 PLN that nearly blocked the sale of the entire company.
Mistake 1: Confusing book value with market price
Many factory owners in Silesia make the same mistake when selling. They look at the depreciation tables that their accountant has kept for 8 years. The problem is that the tax office has its rules, and the secondary market for machines has completely different ones. A CNC machine that according to the papers is worth 42,000 PLN might be worth 73,000 PLN if it's well-maintained. Or vice versa – it might only be worth the price of scrap because the controller is no longer available. We calculate real profit, not what looks good in the annual balance sheet.
During a valuation for a client from Sosnowiec in March 2024, we noticed that their press brake was undervalued by 21,300 PLN. A buyer from Germany was just waiting for no one to notice. Hard data from the floor show that a machine is worth as much as someone will actually pay for it on a Thursday morning, not what an official wrote down 4 years ago. We check every zloty, analyzing the last 14 transactions of similar models on industrial portals.
Being honest is fundamental in this business. If a machine is old and worn out, we write it straight. The buyer will discover it anyway during the site visit. At Silesia Capital Advisors, we do not sugarcoat reality. It's better to know at the start that a machine has a defect than to lose the investor's trust on the home stretch. It often happens that one minor fault forgotten by the operator lowers the value by 4-6 thousand PLN in the eyes of the buyer, because they estimate the repair with a large margin.
The machine market doesn't read your accounting balance sheets. It only sees technical condition and real productivity during a shift.
Mistake 2: Lack of written service history
Imagine buying a used car without a service book. It's exactly the same with machines for 100,000 PLN. We have seen it dozens of times in plants in Chorzów or Tychy. The machine works great, but the owner doesn't have a single inspection protocol from the last 18 months. This is an immediate argument for the buyer to drive down the price by 10-15%. Facts on the table: lack of documentation is a risk of failure for the investor right after taking over the hall.
We did a test in one of the metal processing plants. The same lathe with a set of invoices for changing bearings and oil sold for 8,200 PLN more than an identical model at a neighbor's who 'did everything himself'. The buyer needs proof that the machine won't stop in two weeks. Documentation is not redundant bureaucracy, it's a hard argument in price negotiations. Without unnecessary adjectives – either you have the paper, or you lose money.
It is worth spending 3 days organizing service binders before showing the company to a buyer. At Silesia Capital Advisors, we help prepare such a checklist. We check if all CE certificates are valid and if UDT inspections were stamped on time. These are details that build the image of a professional company. One missing entry in a machine card can extend the due diligence examination by 2 weeks, generating additional legal costs.
Mistake 3: Ignoring decommissioning and foundation costs
This is a classic that 67% of sellers forget. You think you are selling a machine for 50,000 PLN, but you forget that it is cemented into the hall floor in Ruda Śląska. Removing it, disconnecting utilities, and patching the hole in the floor is a cost that often falls on the seller. Last year, one of our clients had to lower the price by 6,400 PLN because he didn't count the cost of renting a crane and a specialized team to dismantle a mezzanine above the machine.
Logistics costs in Silesia are rising, and the availability of service teams that can safely disconnect an old production line is small. If you don't include this in the offer, the buyer will do it for you and add a 20% margin for 'risk'. Honestly, it's better to have a quote from a transport company on hand right away. At Silesia Capital Advisors, we always check how a machine will leave the hall. Sometimes you have to cut a piece of the gate, which costs another 2,800 PLN.
Remember utilities too. Disconnecting high-intensity electricity or pneumatic systems requires certification. If a buyer sees that cables are cut with a hacksaw, they will immediately start looking for other neglect. This spoils the whole transaction. We check every zloty so that at the end of the day you are not left with an empty wallet and a hole in the ground that you have to repair with your own money before handing over the keys to the new owner.
A machine worth 50,000 might only bring 40,000 in profit if you forget about its decommissioning costs.
How to save those 15k PLN during a sale?
The solution is simple, though it requires work. Before you put the company up for sale, do a technical inventory. Not one 'by eye', but with specific serial numbers, hours worked under load, and a list of spare parts in the warehouse. In 2023, we helped the owner of a small toolroom recover 11,300 PLN just because we found spare controllers in cupboards that he had forgotten about, and which were worth a fortune to the buyer.
At Silesia Capital Advisors, we don't play at theorizing. We arrive at the hall, take photos of the nameplates, and check real energy consumption. These are facts that financial investors love. If you show them that your production line has 91% efficiency (OEE), they won't have room to negotiate the price down. Without fluff – a professional machine valuation report usually pays for itself in the very first round of talks with a buyer.
If you plan to sell a business within the next 6-12 months, start with a machinery park audit now. Often a minor repair for 1,500 PLN raises the value of the device by 5-7 thousand PLN. This is the math we teach our clients. We are not the cheapest on the market, but our valuations hold up against any investment fund. Contact us to set a date for a visit to your hall and stop losing money on wrong assumptions.
