As an Industrial Auctioneer, Certified Appraiser of Manufacturing Equipment, Manufacturing Business Broker and, provider of Capital Equipment Auction Services, I sell or appraise millions each year in Capital Equipment and Manufacturing Businesses. This year we’ve seen a marked increase in acquisition activity for both manufacturing businesses and capital equipment.
Why the increase? In part because of new rules that permit companies to deduct 100% of capital equipment purchases, up to $500,000, in 2013. Smart companies are strategically making acquisitions this year to take advantage of this opportunity to treat equipment purchases as an expense rather than a capital purchase this year. Is this really a big deal? You bet it is! This can significantly lower the cost of ownership, as it represents a $360,000 increase over the 2012 deduction. Capital equipment is defined as Equipment that you use to manufacture a product, provide a service or use to sell, store and deliver merchandise. This equipment has an extended life so that it is properly regarded as a fixed asset. Normally capital equipment must be depreciated over time. The fact that companies can make a 100% deduction this year is sparking activity with companies making the decision to both buy and sell this year.
For those selling ongoing Manufacturing Businesses, this helps boost the process. Buyers are seeking to make a greater portion of the purchase price of businesses attributable to Capital Equipment. Companies that have been considering expansion through acquisition are now accelerating their plans to take advantage of this special tax deduction. This will help spur economic growth for years to come, as well as add to the bottom line retirement dollars of small manufacturers who sell their equipment and/or businesses in 2013.
If you have been “considering” retirement, this special tax deduction and the benefits it could provide should be carefully considered. At Accelerated Buy Sell, Inc. and AcceleratedMfgBrokers.com, we offer free, no obligation consultations for the sale of manufacturing equipment and businesses. Call 908-387-1000 to schedule and appointment and find out what your manufacturing business and capital equipment is worth.
Fran Brunelle is an industrial auctioneer with almost 20 years experience, a manufacturing business broker, licensed real estate broker specializing in industrial properties, a real estate auctioneer, certified appraiser and author. Fran has established several corporations that provide services to the manufacturing industry. The “Accelerated Group of Companies” provides tools and services to help manufacturers grow and exit strategies to maximize dollars when they are ready to retire or sell their manufacturing business. The group of companies that Fran Brunelle has established includes:
www.AcceleratedBuySell.com – Provides Online Industrial Auction Services, Used Equipment Auctions, Capital Equipment Auctions, Plant Liquidations, Industrial Plant Cleanout Services, Used Machinery Location Services, Certified Machine Tool and Equipment Appraisals, and more.
www.AcceleratedMfgBrokers.com – Specializes in Manufacturing Business Brokerage and Mergers and Acquisitions. We help manufacturers develop exit strategies to maximize retirement dollars, and successful manufacturers expand through acquisition of other manufacturing companies, product lines and customer lists. Manufacturing Companies for sale throughout the United States are listed on this site.
www.AcceleratedRE.com – Provides Industrial Real Estate Brokerage Services, Online Real Estate Auctions, Sealed Bid Real Estate Auctions and complete industrial facility cleanout services.
www.IgniteMfg.com – Provides funding for products made in the USA, and engineering/manufacturing educational needs through Crowd Funding.
www.MfgWebSolutions.com – Provides web development and social media services for manufacturers at under-market rates.
Fran Brunelle is a contributing author to:
blog.AcceleratedBuySell.com - A site that provides the latest manufacturing news, statistics and opinion. It also provides information on how to grow a manufacturing business, and what to do if you are a manufacturing company that needs to close.
MFGWebSolutions.com/blog - Provides the latest information on social media and web development for manufacturers. It gives manufacturers tips and tricks for boosting their web presence.