Why an Appraisal?

Business owners, lawyers, bankers, bank examiners, and CPAs all ask the same question: “What’s it really worth?”

Figuring out the market value of one’s machinery and equipment requires a professional with specialized skills and the expertise and certification to determine true fair market value, liquidation value, salvage value, or replacement cost. It makes sound financial sense to obtain a credible Certified Appraisal Report that holds up under scrutiny from financial institutions, government agencies, buyers, sellers, shareholders, and partners.

At Present Value LLC, we typically quote our fee based on the amount of capital items (items that had an original cost of $2,000 or more) that will be appraised. These items are typically the ones with the greatest value. Items of less-than-original value are considered support items (shop, electronics, and furniture) and are included in the appraisal in groups at no additional cost to the client.

Example:

XYZ Company provides Present Value with an asset list. After reviewing the list, Present Value determines there are 200 total items with 30 capital items. One hundred seventy of these items are considered support items and will be placed in different groups and given value at no additional cost. The remaining 30 capital items will be appraised individually as line items, i.e., 30 capital items x $90 per capital item = $2,700. The total cost of appraisal is $2,700. When you take into account the expertise behind the creation of a report like this, and the credibility it brings to XYZ Company, that $2,700 is a small price to pay.

For more information or to receive a quote on your next Certified Machinery & Equipment Appraisal, please contact Present Value at 866-466-8555 or visit us at www.presentvaluellc.com

By Present Value LLC

Tags: appraisal, asset list, certified machinery and equipment appraisal, equipment, machinery, present value, report, worth
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