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Machinery & Equipment Appraisals

When do you need a Certified Machinery & Equipment Appraisal?

  • Business Owners need an Appraisal for insurable value, selling, financing, expansion, and strategic growth

  • CPAs need a Certified Appraisal because the IRS requires a Certified Appraisal by a Certified Appraiser! A Certified Appraisal is also needed when helping their clients convert from a C to S Corporation, Estate and Gift Planning, Trusts, Sarbanes-Oxley, and FASB 141/142.
    Bankers and Lenders need an Appraisal in support of loan and lease decisions to substantiate and collateralize a loan. Especially the Small Business Administration's new SOP's that require a "qualified" equipment appraisal.
    Attorneys need an Appraisal to substantiate accurate and realistic values that withstand IRS and Court scrutiny.

Important key information relating to SBA appraisals

  • If the amount being financed (including any 7(a), 504, seller, or other financing) minus the appraised value of real estate and/or equipment being financed is $250,000 or less,
    the lender may perform its own valuation of the business being sold.

  • The appraisal must allocate separate values to the individual components of the transaction including land, building, equipment and intangible assets.

  • Lenders must carefully evaluate the value of assets other than cash that are injected by owners or principals. Therefore, an appraisal or other valuation by an independent third party is required if the valuation of the fixed assets is greater than the depreciated value (net book value). A valuation of the fixed
    assets provided as part of a business valuation will not meet these requirements.

Our Process

 

Engage

  1. Discuss engagement with client

  2. Agree on terms (price and turnaround time)

  3. Retain

  4. Sign electronic engagement letter

Prepare

  1. Gather machinery and equipment listing

  2. Site visit (unless it is desktop report)

  3. Conduct research

Analyze

  1. Equipment and market data

  2. Assess all methods of valuation (Cost, Market, and Income approach)

  3. Identify the most appropriate method

  4.  Conduct appraisal with supporting analysis

Finalize

  1. Send draft report to client

  2. Finalize invoice

  3. Deliver final report 

What sets us apart?

  • Invested heavily into the latest technology to assist with streamlining processes and eliminating manual data entry

  • We run with little to no overhead

  • Very fast turnaround time! 

  • Very competitive fees!

  • We take pride in being responsive and meeting deadlines

Contact us today to get started on a Machinery & Equipment Appraisal!