What is Asset Relifing?

No Cost, No Commitment
We offer a complimentary assessment to determine the overall benefit for our potential clients.

Resources Required
We require only an Excel version of your fixed asset record to conduct our assessment. Once completed, we will review the results with your finance leadership team. Findings are typically delivered within two to four weeks of receiving your fixed asset record.

Assessment Findings include

• Annual Change in Depreciation Expense
• Impact on Operating Margin
• Length of Implementation
• Professional Fee

Our implementation process can range from a few weeks to several months, depending on the size and scope of the project. When partnering with us, our clients receive four key deliverables as outlined below:

1. Implementation of Findings
On average, our results achieve a first-year reduction in depreciation expense of 20% to 30%, leading to a 1% to 2% improvement in operating margin.

2. Asset Lifing Guide/Post-Implementation Support
At the conclusion of each project, we will provide access to a customized asset lifing guide specific to each unique client to utilize on newly acquired capital on a go-forward basis.

To ensure the adoption of the Harborside Health lifing methodology and continued margin improvement, we have a dedicated process to work with our client’s fixed asset team for newly acquired assets after implementation for a period of 12 to 18 months to confirm our clients have fully adopted the methodology for years to come.

3. Unrecorded Disposals
On average, we identify 10% the Gross PP&E as unrecorded disposals. This results in a positive adjustment to the average age of plant and reduced insurance premiums, both of which positively impact cash flow.

4. Five-Year Replacement Cost Analysis
We provide our clients with a 5-year equipment replacement cost analysis, detailing the estimated year and cost of replacement of each asset. This tool serves as both a capital replacement plan and a resource for leveraging lower pricing through vendor negotiations.

Review
Our results have been reviewed and approved by the Big Four, regional, and community audit firms across the United States. These results do not require a restatement of financial statements, as it is a change in estimates, and can be taken retroactively as a full year adjustment.

Results
On average, our results achieve a first-year reduction in depreciation expense of 20% to 30%, leading to a 1% to 2% improvement in operating margin.

Sustainability
At the conclusion of each project, we will provide access to a customized asset lifing guide specific to each unique client to utilize on newly acquired capital on a go-forward basis.