The town held an auction with much of the farm’s dairy equipment on the block to repay some of the debt remaining after the sale. The proceeds were originally intended to improve the town’s roads.

This example and the ensuing controversy show the importance of an appraisal. If one had been performed by an experienced appraiser, the town wouldn’t have faced such controversy, and the people in the town would have new roads to enjoy, which are now unaffordable.

Present Value LLC is a worldwide international 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

The article suggests that there are a number of ways that such a marriage and business separation can be handled:

• Letting one partner buy out the other, either all at once or over time, as a 50/50 split or in some other proportion
• Dividing the business in two
• Continuing to run the business together even after the marriage ends, which the cited experts call the riskiest approach
• Selling the business and splitting the assets

However the division of the business or assets is dealt with, one of the most important things to do first is get a business valuation and appraisals of all of the assets, including any machinery and equipment, that are jointly owned. You want to make sure that both parties get their fair shares.

Present Value LLC is a worldwide international 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

Divorcing a Business

When Is a Good Time to Get a Business Valuation?

Preparing for Asset Liquidation

Cover Your Assets: Divorce Appraisals

Present Value LLC is a worldwide international 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:

Present Value LLC’s Move into the International Appraisal Business and Why it Will Benefit Our Clients

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.

To Sell or Not to Sell?

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.

Present Value LLC is a worldwide international 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

Then you need to get your assets ready to sell. You can sell pretty much anything and everything as long as they have to do with the business. Make sure to get an appraisal from a certified appraiser because you want to make sure that you get the best possible price for everything you are putting up for sale.

In order to get the best prices, it’s a good idea to clean up and fix all machinery and equipment. Having necessary manuals and warranty information can also help to add value.

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:

To Sell or Not to Sell?

Common Misconceptions About What Auction Value Really Means

Common Definitions of Value for Machinery and Technical Assets

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

What’s It Worth

Certified Machinery and Equipment Appraisal

When you engage an appraiser, these are the steps that an appraiser typically will take prior to determining the value of your machinery and equipment:

• Identify the assets to be appraised
• Define the purpose of the appraisal
• Establish the valuation date for the appraisal
• Determine the appropriate valuation concepts and approaches to be used
• Determine the type of valuation study to be completed
• Select the type of appraisal report to be provided
• Check the availability of data and information

The scope of work is the first step in any appraisal. Without a specific scope of work, the conclusions of an appraisal may not stand up to scrutiny.

By: Present Value

Additional Reading:

Certified Machinery and Equipment Appraisers: Present Value

Certified Machinery and Equipment Appraisal

What’s It Worth?

But the scam could have a ripple effect, because what happens to the people who participate in an auction conducted by a fake seller? It’s so important that buyers who choose to make purchases through auctions make sure they know that they’re working with a reputable auction house and a legitimate seller.

For several years, Present Value has been involved in the auction industry. The company can help a seller by performing an inventory inspection, conducting a machinery or equipment appraisal, and putting the seller in touch with a reputable auction house, which protects both the seller and potential buyers.     

By: Present Value

Additional reading:

Inventory Control Services

The Importance of an Unbiased Third-Party Opinion

Machinery and Equipment Auctions

A recent Time Magazine article reported that many small and community banks are now seeing more demand for loans, which is a positive sign for the economy. According to the article, economists have expressed concern that despite the 3.2% first quarter economic activity growth, there was a lack of business lending activity. Business lending demonstrates business growth, they argue. Businesses in growth mode need financing to purchase equipment and hire staff, and without that there can’t be sustained economic recovery.

As we have discussed in previous posts, banks are lending money, but they are being more cautious about their investments. This means they are conducting more careful due diligence, which includes their own certified equipment appraisals and business valuations to ensure that they will recoup their losses should a loan default. Having a defensible, impartial appraisal in hand can help increase the chances of getting much-needed money for a small business.

By: Present Value

Additional Reading

5 Cs of Lending (How Appraisal Fits in Even Though It Doesn’t Start with C)

Got a Startup? Get a Business Valuation

Present Value: More than an Appraisal Firm

We’ve written many times in the past about online and in-person auctions, the reasons to conduct an auction, the steps to take to prepare for one, the different types of values given to items up for auction, and Present Value’s ability to offer the service. Given this recent proof that demand for auctioned equipment is high, we decided to revisit the subject.

When a business fails or is asked to leave a property, often the business owner will decide to hold an auction with the goal of quickly selling equipment for as high a profit as possible. Present Value can represent companies in these situations through the whole transaction. Our appraisers will provide companies with the three values of the equipment – liquidation, forced liquidation, and fair market – and facilitate the auction process, which will be conducted by one of the two auction houses with which we partner.

By: Present Value