Public / Private Utility Appraisals

Appraising Water Treatment Plants and Power Generating Facilities

by Administrator on May 25, 2016 • Public / Private Utility Appraisals • 1732 Views

Many appraisers are never given the opportunity to appraise a water treatment plant or a power generating facility since many are publicly owned and they don't often transfer ownership but there are times when even the government or a private utility owner need a property valuation. Water treatment plants and power generating facilities are "going-concerns,' and thus the properties include a real property value and a value associated with their business entity, but the business entity value is usually nominal. Properties of this type are capital intensive and rates are often regulated. Does that mean that these facilities don't provide good returns? No. As evidenced by the recent acquisitions of major utility companies by prominent investors it is anticipated that utility companies currently provide and will likely in the future provide a reasonable return.

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