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Why use a certified appraiser?

A survey was recently conducted at an American Institute of Certified Public Accountants Conference in which more than 100 CPAs said that when assigning value to a business’s tangible assets, like machinery, one of the biggest problems they face is liability risk as a result of invalid information. This is one of the reasons why it’s important to have a certified appraiser research and assess your business’s assets and compose a reliable valuation report.

A certified machinery or equipment appraisal is one that is compliant with the standards of both the National Equipment and Business Builders (NEBB) Institute and the Uniform Standards of Professional Appraisal Practice (USPAP), and verified with a personal inspection, research, data, documentation, and photographs. A certified appraiser will eliminate guesswork and tell you the fair market value of your machinery and equipment, rather than your assets’ book value, which, unlike a fair market valuation, has no comparables. You can also ask a certified appraiser to tell you your equipment’s liquidation value, salvage value, or replacement cost.   Beware the valuation of auctioneers or machinery and equipment dealers. Auctioneers and dealers may deliver valuations inconsistent with fair market value in anticipation of an auction or a profitable sale. And most auctioneers and dealers who are asked to provide an appraisal report will not deliver one that is USPAP compliant, which means that it will not meet the needs of governing authorities. By relying on non-certified appraisers like these, you open yourself up to increased costs, liability, and risk.  Present Value is a certified member of the NEBB Institute and its professionals are USPAP compliant and provide customers with certified appraisal reports that meet the requirements of financial institutions, government agencies, buyers and sellers, shareholders, and business partners. For more information about the machinery and equipment appraisal services available through Present Value, click here. By: Present Value LLC

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