A desktop appraisal is pretty much exactly what it sounds like. These appraisals are done without the benefit of an inspection and are based on information that is provided by the owner of the equipment. Desktop appraisals can be certified if done by a qualified appraiser. Still, they are often considered less reliable and informative
Most of us are interested in estate planning (at some point), and owning a business mandates the need to understand the value of your business as part of the planning exercise. A business typically represents a very large, if not the most significant asset on your balance sheet. One of the main goals in the
The importance of Purchase Price Allocation when buying or selling business assets. Have you recently purchased or acquired another business? Congratulations! Did you know that a merger or acquisition often involves additional tax and financial reporting requirements? One of the most common reporting requirements is a Purchase Price Allocation (PPA). Why is it essential to
If you have just purchased a large piece of equipment, then you may wonder why you would need to have a machinery valuation done. After all, wouldn't the equipment be worth the price you just paid for it? Not necessarily. Read further to understand why you still need to have equipment appraisals after a purchase.
Why is it essential to hire a qualified appraiser? When it comes to appraising, there is no room for error. By definition, an appraisal is an objective, impartial, and unbiased opinion of defined value completed by a competent, ethical, and qualified appraiser. It requires an understanding of the client’s machinery and equipment appraisal problem, and
Should you hire an auctioneer or dealer to appraise machinery and equipment? Auctioneers and machinery and equipment dealers may have a hidden agenda. Most of these individuals are not certified or trained in providing USPAP compliant appraisal reports. If the appraisal report you obtain is not USPAP compliant, it is not a “qualified” appraisal prepared
Why do Business Owners Need Certified Machinery and Equipment Appraisals? Lenders, CPAs, Attorneys, Courts, and the IRS all require a USPAP (Uniform Standards of Professional Appraisal Practice) compliant, substantiated Certified Machinery and Equipment Appraisal. If the machinery appraisal report you obtain is not USPAP compliant, it is not a “qualified” appraisal, and it will not
Equipment Appraisals for Divorce Litigation Purposes Business assets are treated much the same way as personal assets when going through a divorce. An equipment appraisal will be necessary to determine the fair market value of the equipment. When dividing assets, there needs to be a method for determining what value you are dividing with your
I frequently get asked to quote equipment appraisal projects. Often the potential client has never purchased an equipment appraisal before. Before I begin, I review what information is needed to prepare a quote for an equipment appraisal. First is the reason (or need) for the report. The report structure for financing collateral purposes, for
When you're looking at machinery and equipment appraisals, the different approaches taken to determine machinery valuation can seem mind-boggling at times. As an equipment appraiser, I know best which type of appraisal fits my Client's situation and their business' needs, but knowing a bit about common appraisal practices helps you better understand your equipment value
