Establishing the Fair Market Value (FMV) of heavy medical equipment is a multi-layered process. Linear accelerators accrue many costs when adding up the various parts. To better understand how to form a proper valuation, keep reading to become familiar with commonly used appraisal terms.
Fair Market Value (FMV)
Also known as “retail” value, FMV is the price a buyer should anticipate paying to have the device relocated and installed at their location. Software relicensing, commissioning, and accessories required to operate the equipment are all extra fees.
Orderly Liquidation Value (OLV)
Sometimes referred to as “wholesale” value, OLV is the price a buyer can expect when selling an “as-is, where-is” product.
In Place Value (IPV)
Another name for IPV is “turn-key” or patient-ready value. It takes into account the values associated with the machine, including the cost of installation, commissioning, software licensing, regulation, accessories, and residual warranty coverage.
Some factors that impact the medical equipment’s valuation include:
- Age
- Configuration
- Physical condition
- Useful life left
- Software version
- Functionality
- Removal path
- Resale market demand
- Wear and tear
- Geography
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RadParts, a TTG Imaging Solutions Company, is the world’s largest independent distributor of OEM replacement parts. We specialize in low-cost parts for repairing linear accelerators and radiation equipment. Our mission is to provide high-quality, user-friendly, low-cost components and support for linear accelerators and radiation equipment. Contact RadParts at 877-704-3838 to learn more.
Written by the digital marketing team at Creative Programs & Systems: https://www.cpsmi.com/