Who Needs a Certified Machinery and Equipment Appraisal? Part 2
We have discussed in numerous posts reasons why you should always rely on a certified machinery and equipment appraiser (CMEA). To reduce your risk of liability, you should be sure that the appraisal is conducted by a certified professional. CMEAs meet all government training requirements, and will provide appraisal reports that are USPAP compliant and will stand up to scrutiny in a court of law. In our last post, we covered two groups of business professionals that should always rely on CMEAs when it becomes necessary to know the value of any machinery and equipment. Here are two more.
Business Owners and CMEAs
Business owners might need to engage a CMEA for a number of reasons. If they’re selling equipment, they need to make sure they are not selling too low or pricing their machinery and equipment above the fair market value. And, if their equipment or machinery is to be used as part of their overall business valuation, their values need to be substantiated in order for the business valuation to be as accurate as possible.
Lenders and CMEAs
As a result of a shaky lending market, bankers and lenders are using new ways to reduce their liability when making loans. Lending decisions now often are based on the value of collateral a business has, including machinery or equipment. One of the best ways they can protect themselves is by relying on a CMEA. They need to know the fair market, orderly liquidation, and forced liquidation values of the equipment, which become important in the event of a loan default.
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:
Who Needs a Certified Machinery and Equipment Appraisal? Part 1
Three Things to Think About When Engaging a Machinery and Equipment Appraiser
The 7-Step Scope of Work for a Typical Machinery and Equipment Appraisal