Machinery & Equipment Appraisals
Machinery and Equipment Valuation Expertise You Can Rely On
Get independent, supportable equipment valuation opinions for the following applications:
- Financing
- Merger & Acquisition
- Property Taxes
- Insurance
- Sale or Purchase
- Business Valuation
- Fixed Asset Inventory Reconciliation
- Fair Value Financial Reporting
Fair Value and Market Value
In determining Value, we consider the cost, income, and market approaches as appropriate to the assets involved and the supporting evidence available. This data is utilized in our valuation analysis that includes estimating replacement cost new less depreciation from all causes, research of market data for recent sales/offering by used equipment dealers of comparable equipment and other fixed assets, public information regarding auction data from comparable equipment, and a correlation of value indications from the three approaches.
Fair Value and Market Value In Use
If the equipment, furniture, fixtures, and computers will continue to operate as is, then the piping and electrical connections are also appraised, as applicable. This value is used to establish a new Federal Tax depreciation basis, and to comply with GAAP, SFAS 141, and SFAS 141R.
Orderly and Forced Liquidation
Lenders of course, need to know the Orderly and Forced Liquidation Value that might be realized if the loan defaults.
Shortcut appraisals using rules-of-thumb such as “Net Book Value equals “Fair Market Value” or quick methods of trending original cost and applying a depreciation factor produce highly distorted and inaccurate results.
Success Story
A manufacturing firm was seeking a loan to fund a major acquisition and needed their assets appraised at 6 plants in 90 days to be used as collateral. The appraisal was done in 60 days and exceeded the value they needed. The acquisition was completed and added significant growth and success to the firm.