If you ask me to give you a number for equipment value... well, I guess I would need more information before I can offer an answer. As a CPA and financial analyst who also works in the M&A (mergers and acquisitions) market, my brain generates a menu of values (see Equipment Value Categories), depending on what a contractor is trying to establish.

When I have a typical discussion with clients needing a business valuation, I ask them "as of when" and "what for" because the spread in values can be pretty significant. We won't get into why there is a spread, but believe me there is one.

Think there can be a significant spread in equipment values? Actually, you can count on it. If you add in seasonality and the business cycle, the values get even nuttier. In short, the value of anything for any circumstance is good for about 20 seconds, and the answers will be different from each source you ask to supply equipment values.

Equipment transactions
The equipment value categories listed below can be grouped according to similar themes. For example, with equipment transactions, you would be concerned with retail, trade-in, wholesale and rent-to-sell transition value, and possibly (but hopefully not) scrap value.

In the first category, you can find rental and wholesale information from manufacturer and dealer web sites. Rental houses may also be able to provide a price on a new or used piece of equipment. Auction houses and Internet equipment sites help establish a price range for used equipment.