Fixed Asset Valuation
Hi Guys,
I have an offer for a small healthcare appraisal company for their Fixed-Asset Valuation Analyst position. The main things being appraised are machinery, equipment, and personal property. How valuable is this type of experience? I tried looking for related topics but only found valuations that deal with business, finances, and taxes.
My goal is to get into real estate finance and do REPE or REITs.
Would this be a good start?
Any insight or help is appreciated.
Thanks!
I previously worked in the valuation group of a public accounting firm. I spent the majority of my time performing fixed asset valuation work while the service was being built up at my firm. Valuation, at a high level, can be categorized in the same manner for fixed assets or real estate (asset aka cost, market, and income approaches). We worked side by side with our real estate valuation colleagues on many projects. That being said, I don't think that this experience will provide many transferable skills to a future career in real estate. You may benefit from some networking with other real estate professionals, but these likely won't be guys in REPE. You will likely do very little, if any, valuation utilizing the income approach (cash flow based, think DCF) as attributing cash flows to machinery/equipment is generally not feasible/appropriate. Correct me if I'm wrong, but I'd imagine that most REPE is concerned with cash flow generating properties and would rely heavily on cash flow based valuation analyses.
I do not regret my time spent in valuation, but it wasn't what I wanted long term. Many of my coworkers are still there and are seemingly making a career of it. Are you a recent grad? If you have no other prospects then I'd definitely recommend going forward with it. My 2 cents.
Hi sjame14,
Thanks for replying and providing such details.
I am not a recent grad. I graduated last year and I am currently a Financial Analyst for a corporation. I do not like what I am doing and was looking into doing more modeling. I took a finance real estate class while in college and enjoyed it, so I thought I would look into getting into real estate.
Do you think taking this offer for a year and then trying to get into Asset Management is feasible? It is currently my only offer and I do not want to stay at my current company for much longer. Does this position require a lot of work hours? Also if you do not mind me asking, would you know what the salary is for a Fixed Asset Valuation analyst is?
I appreciate your help on this.
The move from fixed asset valuation to Asset Management is not a typical path, based on my experience. My previous experience valuing machinery and equipment played no role in landing my current gig.
Does your current role allow you to do any financial modeling or fundamental research or is it more of an accounting role in the "finance department" of a corporation? Are you able to obtain in-depth industry knowledge in your role? A true understanding of the industry, revenue drivers, etc can be very helpful in modeling the financials of a company and can make you an attractive candidate for more research oriented roles or the sell side. Then, sell side to buy side would become an option.
Pay will vary with location due to cost of living, but from my experience it's on par with 1st or 2nd year public accounting firm staff. This would be adjusted upward if your role isn't considered entry level. FYI - my experience in fixed asset valuation involved a lot of travel. Don't know if that's a pro or con for you, but just wanted to throw it out there. Work hours were in the 45-60 hour range most weeks (fair degree of variability since it's project based work). Because I worked under the umbrella of a public accounting firm, we were susceptible to heavier workloads during the spring and so hours could spike up some. This likely won't apply to your offer if they aren't an accounting firm.
If you're really interested in asset management, consider pursuing the CFA designation. Also, network! Head count is low at investment management shops so simply applying to job listings may not be enough.
Thanks again sjame13. Your reply definitely provided a lot of insights. I have asked about financial modeling and they did tell me that I would gain experience in that. I will have to do research on prices of the assets as well. I do think I will be exposed to industry knowledge as well but that is in healthcare. I am well aware of the traveling. They talked about that a lot and was also on the job posting. I think that is a pro as I do want to go to places even if they are not ideal places.
I will think about this and come up with a solid decision.
Thanks so much for your help!
Fixed Asset Valuation Analyst (Originally Posted: 06/15/2016)
Hi Guys,
I have an offer for a small healthcare appraisal company for their Fixed-Asset Valuation Analyst position. The main things being appraised are machinery, equipment, and personal property. How valuable is this type of experience? I tried looking for related topics but only found valuations that deal with business, finances, and taxes.
My goal is to get into real estate finance and do REPE or REITs.
Would this be a good start?
Any insight or help is appreciated.
Thanks!
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