Top 5 Machinery and Equipment Appraisal Posts from Present Value in 2010
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 four factors can help ensure that your machinery and equipment appraisal report will hold up under scrutiny.
The 7-Step Scope of Work for a Typical Machinery and Equipment Appraisal
As part of a typical machinery and equipment appraisal, the appraiser will outline the scope of work involved in an assignment. The USPAP (Uniform Standards of Professional Appraisal Practice) has put forth guidelines that machinery and equipment appraisers should include in the scope of work. The minimum standards for scope of work include the expectations of the client and other users and the actions of other appraisers who carry out similar assignments.
5 Cs of Lending (How Appraisal Fits in Even Though It Doesn’t Start with C)
Although this title may sound a little strange since appraisal doesn’t start with the letter “c,” most would-be borrowers probably don’t realize the role an appraisal can play in the eyes of lenders.
In previous posts, we have discussed that if a business owner is looking to sell equipment or machinery, he/she needs to know three separate types of value that their assets could bring in the market – orderly liquidation value, forced liquidation value, and fair market value. The differences among these types of machinery and equipment asset valuations are dependent upon the situation of the business and the time frame in which the assets need to be liquidated. Recently, however, we have seen that in certain markets, like California, there may be almost no difference between orderly liquidation value and fair market value due to sluggish market conditions.
Preparing for Asset Liquidation
If you are a small business owner who has made the decision to liquidate your assets, there are a number of things to think about as your prepare to do so. First you will need to attend to a number of legal matters. You should meet with your attorney and accountant to ensure that you have all the paperwork in order to legally shut down your business and are prepared to deal with the tax issues related to liquidation. It is best to document everything to save yourself trouble down the road.
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By: Present Value