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Archive for the ‘Machinery & Equipment Appraisal’ Category
April 27, 2010 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. The well-known 5 Cs of Lending consist of: Character – Evaluation of the business’ financial performance, credit report, management, and payment trends; [...]
April 15, 2010 Understanding Depreciation for Machinery and Equipment
The term depreciation has different definitions depending on the audience you are speaking to. In accounting and finance, depreciation means the allocation of the cost of an asset over time. It is a way of allocating the purchase price of an asset across its useful life, which takes into account what is considered normal wear [...]
April 13, 2010 Case Study: Southern California Healthcare Provider
Late last year, Present Value LLC was hired to perform a large inventory project for a healthcare provider in southern California. The company first asked us to help them choose an inventory management system. After researching the available options, we provided the company with three recommendations. The healthcare provider selected the one that best met [...]
April 6, 2010 Manufacturing Operators and Lenders Seek Alternatives to Remain Viable
It may come as a surprise to many people that manufacturing is still the largest industry contributing to the United States gross domestic product. According to government numbers, manufacturing employs approximately 16.7 million workers, meaning that it is still an industry that needs attention. The size of industrial production and significance in the U.S. economy, [...]
March 16, 2010 Case Study: International Medical Device Manufacturer
In late 2009 and into 2010, Present Value LLC was engaged by a bank to perform a certified machinery and equipment appraisal and an inventory appraisal for an international medical devices manufacturer. The bank called for the appraisal in order to confirm the company’s assets as part of its pre-loan due diligence. Present Value LLC [...]
February 25, 2010 Businesses Appraised by CMEAs
A CMEA is a Certified Machinery & Equipment Appraisal. It can tell you the fair market value, liquidation value, salvage value, or replacement cost of the equipment and machinery used by your company or business. A CMEA prepared by a professional and licensed appraiser meets the requirements of financial institutions, government agencies, buyers, sellers, shareholders, [...]
January 21, 2010 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 [...]
January 7, 2010 Idle Speculation
Last week, in our post titled Location, Location, Location, we discussed the ways in which state laws and the geographic location of a piece of equipment can affect its value. Today, you’ll have to forgive our speculation as we imagine what would happen if California’s emissions laws spread east. First of all, keep in mind [...]
January 1, 2010 New Year, New Planning
This year, 2009, has been a tumultuous one. While there is no way of knowing what the future will hold, you can plan for the future. Planning for the future of your business is always a sound move. You need to know the value of your assets and the value of your business. Over the [...]
December 29, 2009 Location, Location, Location
One of the things an appraiser has to take into consideration when determining the value of a piece of equipment is its location. Each state is governed by its own set of laws that can affect the worth of a piece of machinery or equipment. Take California, for example, where Present Value has an office. [...]