Equipment Auctions

Companies may consider equipment auctions when they are asked to leave a rental property and can’t afford to move their equipment from the space, or if the business simply fails for any number of other reasons. The goal of an equipment auction is for the struggling or failing company to quickly sell off equipment with as high a profit as possible.

The first step a company considering an equipment auction should take is to have its equipment appraised by an equipment and machinery appraiser. An appraiser will give that company three different values of its equipment – the orderly liquidation value, the forced liquidation value, and the fair market value – so that the company will have an idea of how much money it could get for its equipment at auction. After the company knows these values, it can contact an auction house. The auction house will send an e-mail blast to interested buyers and make sure that they are aware of the equipment that is up for sale for 45 days prior to the scheduled auction. Then, the live auction takes place at the facility.

In recent years, online auctions have increased in popularity. Incorporating online auctions with live auctions provides significant benefits to both buyers and sellers. Buyers can find the equipment they need without being limited by geography, and sellers have a convenient way to access a larger pool of buyers.

If you are considering an equipment auction, contact Present Value. Present Value’s certified appraisers will represent you throughout the entire transaction. They will tell you the liquidation, forced liquidation, and fair market values of your equipment, and then put you in touch with one of the two auction houses with which the company works.  

By: Present Value

Tags: equipment appraisal, equipment appraiser, Equipment Auctions, Machine Appraisals, machine appraiser
Posted in Equipment Auctions, Machinery & Equipment | 3 Comments »

Why use a certified appraiser?

A survey was recently conducted at an American Institute of Certified Public Accountants Conference in which more than 100 CPAs said that when assigning value to a business’s tangible assets, like machinery, one of the biggest problems they face is liability risk as a result of invalid information. This is one of the reasons why it’s important to have a certified appraiser research and assess your business’s assets and compose a reliable valuation report.

A certified machinery or equipment appraisal is one that is compliant with the standards of both the National Equipment and Business Builders (NEBB) Institute and the Uniform Standards of Professional Appraisal Practice (USPAP), and verified with a personal inspection, research, data, documentation, and photographs. A certified appraiser will eliminate guesswork and tell you the fair market value of your machinery and equipment, rather than your assets’ book value, which, unlike a fair market valuation, has no comparables. You can also ask a certified appraiser to tell you your equipment’s liquidation value, salvage value, or replacement cost.   Beware the valuation of auctioneers or machinery and equipment dealers. Auctioneers and dealers may deliver valuations inconsistent with fair market value in anticipation of an auction or a profitable sale. And most auctioneers and dealers who are asked to provide an appraisal report will not deliver one that is USPAP compliant, which means that it will not meet the needs of governing authorities. By relying on non-certified appraisers like these, you open yourself up to increased costs, liability, and risk.  Present Value is a certified member of the NEBB Institute and its professionals are USPAP compliant and provide customers with certified appraisal reports that meet the requirements of financial institutions, government agencies, buyers and sellers, shareholders, and business partners. For more information about the machinery and equipment appraisal services available through Present Value, click here. By: Present Value LLC

Tags: certified appraisal, equipment appraiser, Machinery and equipment appraisal, NEBB, USPAP
Posted in Machinery & Equipment | No Comments »

Why a Certified Machinery & Equipment Appraisal?

If you are involved with any of the following business situations, you absolutely need a Certified Machinery Equipment Appraiser (CMEA) professional to provide you with a Certified Appraisal Report that states the true and accurate value of your machinery and equipment.

• SBA Loans
• Partnerships
• Estate Settlements
• 1031 Exchanges
• Trust Agreements
• Merger and Acquisitions
• Retirement Planning
• Gifting for Tax Purposes
• Litigation Support
• Tax Purposes
• Financing
• Insurable Value
• Buy/Sell Agreements
• Divorce Settlements

By Present Value LLC

www.presentvaluellc.com

Tags: equipment appraiser, machine appraiser, machinery & equipment appraisals
Posted in Machinery & Equipment | 2 Comments »