Asset Relifing - Buildings & Equipment

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Principle Valuation’s asset relifing services for buildings and equipment help healthcare operators and owners accurately reflect the useful lives of their assets. This can allow them to:

  • Reduce depreciation expense, thus improving their bottom line
  • Accurately reflect the book value of their assets over time, thus strengthening their balance sheet, as well as age/life and debt to capitalization ratios
  • Improve their credit rating, allowing them to obtain financing at a lower rate
  • Lower insurance costs
  • Reduce capital expenditure requirements
  • Present a more accurate balance sheet

In conducting these studies, our team of appraisers, architects and other professionals examines records that reflect the cost or value of each structural and non-structural component of the physical property, as well as all equipment.  We then combine our expertise with industry guidelines and our in-house database to establish the appropriate remaining life of each component.

Healthcare and seniors housing entities turn to us for building and equipment asset relifing services because:

  • They trust that our studies will be accurate and fair, and will be performed in a timely manner
  • We have studied the actual lives of more than 500 hospitals, and have learned that actual lives are far longer than industry guidelines suggest
  • We have developed an equipment database detailing the historic lives of all hospital equipment
  • Our professional staff have specific expertise in both real estate (land and improvements) and equipment

Projects

  • Analysis for 61 hospitals of a national health system reduced annual building depreciation by more than $50 million
  • Analysis for an academic medical center reduced annual building depreciation expense by approximately  $6 million and annual equipment depreciation expense by approximately $8 million
  • Children’s medical center – Analysis for a children’s medical center reduced annual building depreciation expense by approximately $5 million and annual equipment depreciation expense by approximately $6 million.  Additionally, we identified approximately $23 million in unrecorded disposals of equipment

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Our clients have used Principle Valuation for valuations for purchase and sale transactions, compensation relationships, and support for tax purposes. They do straightforward and intelligent work, and are very responsive.

Scott Becker, Partner, McGuire Woods

We selected Principle because of their experience and reputation in the market. They are very knowledgeable about the industry, and particularly HUD financing. They were very thorough and hit their deadlines. Their appraisal went through HUD with no issues, which also made the borrower very happy.

Ken Buchanan, Senior Vice President and Chief Underwriter (Eastern Region), Walker Dunlop

Principle Valuation provides excellent valuations for ongoing healthcare enterprises, as well as placing values on the individual assets. They are very timely, reliable, have a solid understanding of the regulatory implications of their work, and are authoritative in the way they present their information.

Mike Anthony, Partner, McDermott, Will & Emery

Principle Valuation is far superior to any other valuation firm we have worked with. They are knowledgeable about businesses, real estate and equipment. And their reports are always right the first time.

Ken Doran, President and CEO, Spectrum Heatlh Partners

Contact

190 South La Salle Street, Suite 2900
Chicago, IL 60603
312.422.1010
info@principlevaluation.com