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Machinery & Equipment Appraisals

Machinery Appraisals & Equipment Appraisals

Whenever there is a question regarding value of a particular asset, there is also risk involved. It may be the risk of selling an asset too low or paying too much. The risk of being under insured or the risk of not receiving your fair share in a settlement or division of property.
 
American Business Appraisers, LLC can help you manage these and other risks by providing a "Certified Machinery & Equipment Appraisal" according to standards set by the CMEA designation and the Uniform Standards of Professional Appraisal Practice (USPAP).
 
Accurately identifying, recording of business assets is important in establishing a creditable and defensible final opinion of value. American Business Appraisers, LLC provides machinery and equipment appraisal reports for:
 
  • SBA Lending
  • Partnerships
  • Estate Settlements
  • 1031 Exchanges
  • Trust Agreements
  • Merger and Acquisitions
  • Retirement Planning
  • Gifting for Tax Purposes
  • Litigation Support
  • Tax Purposes
  • Financing
  • Insurable Value
  • Buy/Sell Agreements
  • Divorce Settlements
 

Standard of Value

There are several "standards of value" that an asset can be valued under. Each "standard of value" will produce a different market value for the same asset, depending on the intended use of the report. Selecting the proper "standard of value" is essential in arriving at the correct market value under the highest and best use definition.
 
American Business Appraisers, LLC utilizes the following definitions regarding the "standard of value". The definitions are listed in order from the highest estimate of value, descending to the lowest estimate of value.
 
Fair Market Value(1) - In Place, (in use): The most probable market price expressed in terms of cash equivalents an asset should bring in a competitive and open market under a reasonable time period at an assets' highest and best use. An assets' value includes all transportation, labor and material costs to place the asset into use.
 
Fair Market Value(1) - In Place (not in use):
The most probable market price expressed in terms of cash equivalents an asset should bring in a competitive and open market under a reasonable time period, at the assets' highest and best use. An asset, not in operation, but is capable of being moved and placed into service (does not include transportation, labor or material costs to place asset into use).
 
Liquidation Value (in place): The most probable market price expressed in terms of cash equivalent an asset should bring, considering the present marketplace conditions and assuming an assets' similar utility or use to be sold intact (i.e. bulk sale). It further considers the FMV, as normally defined, which could not be obtained due to restrictions of time and probable conditions not represented under a fair sale transaction.
 
Orderly Liquidation Value: The most probable market price expressed in terms of cash equivalent, an asset should bring held under an orderly sale condition (as is and removed), given a reasonable period of time to find a hypothetical buyer.
 
Forced Liquidation Value:
The most probable market price expressed in terms of cash equivalent, an asset should bring conducted under conditions of limited exposure time and similar to public auction conditions (i.e. highest bidder).
 
(1) Fair market value is defined as "the transfer of property or bundle of rights at the most probable market price, expressed in terms of cash equivalent, under reasonably exposed market conditions of a fair sale, assuming both the hypothetical buyer and seller are not under any compulsion to buy or sell and both having reasonable knowledge of the relevant facts".
 

MACHINERY & EQUIPMENT APPRAISAL REPORTS

 
SUMMARY APPRAISAL REPORTS
typically includes an on-site inspection by the appraiser to document specific information regarding the machinery or equipment, including, but not limited to; model numbers, serial numbers, engine size/hours, mileage, upgrades or modifications (if any), date of acquisition and condition. Asset is photographed and tagged with an appraisal identification decal. Report details major equipment with related picture for easy reference.
 
DESKTOP APPRAISAL REPORTS
are performed without an onsite inspection of the asset by the appraiser. We provide the client with an "equipment documentation form" and "definitions of conditions", to complete and return to us. Clients are responsible for collecting all physical data, report current conditions and supply us with digital photographs. American Business Appraisers relies upon the detailed description provided by the client to form an opinion of value. Desktop appraisals are brief in nature. Photographs are not included in the report; however they are kept in the appraiser's work papers. Major equipment items are itemized in the report and other assets are group (bulk value) and documented as aggregate values.
 

 Machinery & Equipment Sample Valuation Reports
 
 

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Frequently Asked Questions
» We are considering acquiring a business. Can your certified business appraisers help?
» Can your business appraisal experts help me with a buy-out of my business partner?
» Are the business valuation specialists employed by American Business Appraisers certified appraisers?
» Are your certified appraisers able to speak about business valuation issues at our national conference?
» Do your certified appraisal services include valuations for Small Business Administration (SBA) Financing?
» Does your firm perform estate and gift tax services to satisfy IRS requirements?
» Our lease agreement on some machinery and equipment will be expiring soon. Can your certified machinery appraiser conduct an appraisal to be used in buyout negotiations?
» The bank is requesting the fair market and liquidation value of our assets to be used as collateral for a loan. Can your construction equipment appraisal experts help?
» I'm going through a divorce and need my business and assets appraised, What is my first step and can your valuations analysts help?
» Can a business valuation help to value intellectual property?

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