Get Organized – Make a list of all the equipment that needs to appraised. It’s also helpful to have all the serial numbers and other pertinent information for your machinery or equipment. Pull together any receipts, including records for repairs or maintenance, and owners’ manuals.

Clean and repair – Make sure that all of your equipment is clean and have any necessary repairs taken care of. Especially if you are looking to sell your equipment, you want to make sure that you can get the highest value possible.

Do Your Research – Make sure that you are working with a reputable, certified machinery and equipment appraiser (CMEA). 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.

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

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

What’s Your Business Really Worth?

A recent article on Inc.com, “How to Find Out What Your Business Is Really Worth,” provides advice from a professional who has owned multiple businesses to small business owners, who might be wondering how much their businesses are worth. He discusses his own experiences as a business owner and wondering what his business was worth; essentially, he was guessing at what his business was worth, only to realize that he was way off.

Some Tips if You’re Thinking About Selling a Small Business

The first step you have to take is getting your financial house in order and getting a business valuation, and this post outlines some of the documents that you’ll need to prepare for a valuation of your company.

Strive to Be Unique and Improve Your Business’s Value

There was an interesting article in the Fort Worth Business Press today called “Strive to be unique; it’s where the real value is.” The article discusses business owners who, after having a business valuation performed, want to know how to increase the value of their business. The predictable answer is to work toward increasing bottom-line profits, but there’s another, more effective way of improving your business’s worth: Differentiate yourself.

Financial Advisors Urging Business Owners to Know the Value of Their Businesses

Because of the economic downturn, many business owners are reluctant to think about the value of their businesses. Fearful that their businesses have lost value, it’s the last thing they want to hear about. An article in Financial Advisor suggests that many business advisors are urging their clients who own businesses to have their businesses valued in order to gauge their business health and for planning purposes, including adjusting estate and succession plans.

Small Business Owners and Planning for Retirement

In today’s New York Times online blog, You’re the Boss, there is a thought-provoking post “Are You Sure You Don’t Want to Retire?” that discusses the plight of older small business owners who are being forced to consider whether or not retirement will be in their future. The author, Barbara Taylor, discusses a recent Gallup poll that reports that 47% of small-business owners may never retire.

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

In addition to other provisions, the most welcome news for small business owners is that Small Business Administration (SBA) lending is supposed to increase this year. The article reports that some experts predict that that the volume of loans will double in 2011.

“According to the SBA, the new law provides approximately $30 billion to small banks (those with less than $10 billion in assets) for lending to small businesses, offers approximately $12 billion in tax breaks to small businesses and expands the loan limitations of the SBA.”

If these figures are correct, it benefits small businesses to have a defensible, impartial asset appraisal conducted by a Certified Machinery and Equipment Appraiser prior to seeking a loan in order to help increase the chances of getting approved. Additionally, if there are some areas where a business may be weak in the eyes of lenders, a business owner can use an appraisal to make changes and improve the chances of getting a loan.

To read more about the Small Business Act of 2010, visit the SBA website.

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:
SBA Changes to go into Effect on October 1, 2010

Who Needs a Certified Machinery and Equipment Appraisal? Part 1

Who Needs a Certified Machinery and Equipment Appraisal? Part 2

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

The Importance of an Unbiased Third-Party Opinion

Accountants and CMEAs

Quality accountants should act in the best interest their clients, and the best thing they can do is to make sure that they are compliant with laws and best practices when dealing with the IRS. If an accountant does not rely on a certified machinery and equipment appraisal to determine the value of a piece of equipment, he or she is putting clients at a significant risk. Oftentimes, the IRS will not accept the value of a piece of equipment that is not substantiated.

Here are situations in which accountants should always secure a certified machinery or equipment appraisal to avoid penalties and help eliminate risk of liability for their clients:

• Converting from C Corp to S Corp
• 1031 Exchanges
• Gifting
• Sarbanes-Oxley Compliance
• Determining Property Taxes

Attorneys and CMEAs

For attorneys who work on cases that involve the value of a business’s physical assets, like machinery and equipment, it is risky to rely on the outdated client estimates, depreciation schedules, or guess at value rather than rely on a certified machinery and equipment appraisal. Attorneys need to make sure that appraisals will hold up to scrutiny with the IRS, courts, or lenders. This is also important in the following situations:

• Loans / Leases • Property Taxes • Insurable Value
• Divorce • Converting from C to S Corp • Cost Segregations
• Taxes • 1031 Exchanges • Trust Agreements
• Buy / Sell Agreements • Estate Planning • Bankruptcy
• Retirement Planning • Partnership Dissolution • Strategic Planning
• Litigation Support • GASB 34 • Sarbanes-Oxley
• Collateral • Gifting

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:

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

The Importance of an Unbiased Third-Party Opinion

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

Whether you need to know the fair market value, orderly liquidation value, and/or forced liquidation value of your equipment, the professionals at Present Value can provide you with a certified equipment appraisal report in a timely manner at a competitive cost. Our certified equipment appraisals will meet the requirements of financial institutions, government agencies, buyers and sellers, shareholders, and partners. Our experience and expertise extends across all machinery, equipment, and technical specialties. Below are examples of some of the industries in which we specialize:

• Health Care and Medical Industry – Examples of equipment appraised: MRI Imaging Systems, CT Scans, Ultrasound Equipment, Dental Offices, Nursing Homes, Hospital Equipment, Cardiovascular, Ophthalmology, Nuclear Imaging, Orthopedics, Surgical Centers, EP Systems, Physical Therapy Clinics, X-Ray Machines, Advanced PET Systems, PACS Systems, and more.

• Manufacturing Industry – Examples of equipment appraised: Plastics Manufacturing, Machine Shops, Woodworking Equipment, Agriculture Equipment, Routers, Sanders, CNC Equipment, Lathes, Conveyers, Air Compressors, Industrial Tanks, Brake Presses, Extruders, Saws, Planners, Vacuum Pumps, Drill Presses, Benders, Die Cutters, Saws, Molds, Tooling, Cutters, and more.

• Heavy Equipment and Construction Industry – Examples of equipment appraised: All Yellow Iron, Excavators, Compressors, Stackers, Aerial Lifts, Crushers, Spreaders, Backhoes, Cranes, Dozers, Rigging Equipment, Skid Loaders, Shop Equipment, Oil Field Equipment, Asphalt Plants, Washing Equipment, Incinerators, Drilling Equipment, Generators, Railroad Equipment, Tractors, Trucks, Trailers, Environmental and Recycling Equipment, Sweepers, Soil Stabilization Equipment, Aggregate Equipment, and more.

By: Present Value

Additional reading:

Certified Machinery and Equipment Appraisal

Businesses Appraised by CMEAs

There are many different types of businesses that can benefit from a business appraisal, including many that are out of the ordinary, such as (but not limited to):

• Aerial Spraying Services
• Asphalt Plants/Sand Pits
• Candy Shops
• Chemical Manufacturers
• Chemical Distributors
• Country Clubs
• Dental Practices
• Donut Shops
• Gasoline Stations
• Historical Buildings
• Ice Cream Stores
• Janitorial Companies
• Machine Shops
• Maid Service Franchises
• Mall Specialty Shops
• Medical Clinics
• Millwork Shops
• Moving and Storage Companies
• Oil and Gas Refineries
• Refuse Hauling Companies
• Rock Quarries
• Rodeo Stadiums
• Supper Clubs
• Swimming Pool Builders
• Wallpaper Stores
• Well Drilling Companies
• Well Servicing Companies
• Woodworking Shops
• Wrecker/Towing Services

Irrespective of your business, a CMEA is the best way to assess the value of your company’s assets. To request a CMEA, contact Present Value today.

By: Present Value

A certified machinery and equipment appraisal is a comprehensive and detailed appraisal report that provides an accurate and descriptive account of the value of specific machinery and equipment. CMEA reports include photographs, model numbers, serial numbers, and other descriptive information about the machinery and/or equipment. To determine the worth of machinery and equipment, an appraiser determines the value of equipment based on research, personal inspection, and contact with manufacturers and suppliers.

A CMEA should meet the standards set by the requirements of the Uniform Standards of Professional Appraisal Practice (USPAP), so that your certified equipment appraisal report will hold up under scrutiny from financial institutions, government agencies, buyers, sellers, shareholders, or partners.

By: Present Value