Three Things to Think About When Engaging a Machinery and Equipment Appraiser
An error in a machinery and equipment appraisal can be costly. You should have confidence that the appraisal values are accurate and are backed by evidence to support the fair market value, fair value, orderly liquidation value, or forced liquidation value. These three factors can help ensure that your machinery and equipment appraisal report will hold up under scrutiny.
1. Certification – Make sure that the appraiser you choose has a professional designation to prepare and submit an equipment appraisal – a Certified Machinery and Equipment Appraiser (CMEA). Ask for a copy of his/her qualifications and evidence of professionalism and experience in machinery and equipment appraisals. Then you know you can rely on a trained professional who is experienced in the ethics and reporting guidelines of Uniform Standards of Professional Appraisal Practice (USPAP). Only the skills of a CMEA professional make sound financial business sense in determining an accurate value. Oftentimes, a non-certified equipment appraisal will not be accepted by governing authorities or withstand scrutiny.
2. Code of Ethics – Make sure that your appraiser complies with the Ethics Rule of the Uniform Standards of Professional Appraisal Practice. A CMEA is required to observe the highest standards of professional ethics and comply with regulations mandated by USPAP. CMEAs should promote and preserve the public trust inherent in professional appraisal practice.
3. Certified Machinery and Equipment Appraisal Report – Know what you can expect to see in a qualified equipment appraisal prepared by a certified machinery and equipment appraiser. A CMEA’s comprehensive and detailed appraisal report normally includes photographs, model numbers, serial numbers, and other descriptive information. Values are based on extensive research, personal inspection, and contact with manufacturers and suppliers to determine what machinery and equipment is really worth. A CMEA’s machinery and equipment appraisals are performed to standards set by the requirements of the USPAP. A CMEA stands behind the Certified Appraisal Report. That’s why it withstands scrutiny by financial institutions, CPAs, courts, and others.
Present Value LLC is a nationwide appraisal and advisory company that provides a range of professional services such as Certified Machinery and Equipment Appraisals, Inventory Appraisals, Asset Verification Services, Business Valuations, and Real Estate Appraisals. Contact us today!
By: Present Value
Additional Reading
The 7-Step Scope of Work for a Typical Machinery and Equipment Appraisal